The Shanghai-Capella (Shapella) upgrade of the Ethereum network is scheduled to take place tomorrow, April 12. Investors wonder if the price of ETH will decline once staked Ethereum withdrawals are authorized. After the Shanghai mainnet upgrade, some predict a significant selloff in ETH, but others think the price will stay steady and reach $2000.

According to the notice made by Ethereum core developers, the Ethereum Shanghai mainnet update is slated to occur at epoch 194048 on April 12 at 10:27:35 PM UTC.

Selling Pressure For ETH Following Shanghai Upgrade

According to the Etherscan Beacon Deposit Contract data, there have been more than 18.14 million ETH staked on the Beacon chain, totaling $34.76 billion. Due to restrictions, delays by liquid staking pools, and delays by cryptocurrency exchanges, only a portion of the 18 million ETH will be withdrawn by validators and investors.

Nansen data show that the typical staked Ethereum price is $2,135. Additionally, there are around 4.7 million illiquid ETH worth $9 billion, which is undoubtedly the group most likely to see selling when withdrawals are authorized following the Shanghai upgrade.

Therefore, $9 billion of the $34 billion in ETH is at risk of a selloff, indicating that the price of ETH will certainly face selling pressure.

Due to the fact that the majority of participants are losing money and the largest Ethereum staking pool's depositors are also losing money, there may be little selling pressure following the Shanghai upgrade.

Additionally, Lido Finance, the biggest Ethereum liquid staking platform, revealed that withdrawals of Lido staked ETH (stETH) would probably be put off until May. It became clear that there had been a delay in getting ready for the Ethereum Shanghai Goerli upgrade due to the time required to conduct V2 audits.

A week following the Shanghai update, Binance also announced a delay in withdrawals of staked ETH from the cryptocurrency exchange.

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