- The arrival of Shanghai, which will allow Ethereum 2.0 validators to unlock their ETH, could lift Ethereum’s bullish sails.
- Most ETH options traders are taking long positions by buying call contracts with short expiration Sa.
Ethereum is not only the second largest coin in terms of market capitalization, but it is the most important blockchain within the crypto ecosystem, well above Bitcoin, for example. For this reason, the Shanghai update, scheduled for April 12, creates uncertainty.
shanghai It will not be one more step for the network, but it will will allow Ethereum 2.0 validators to unlock your ETH. It is worth noting that the end of the process that began in December 2020 when it was launched to leave Proof-of-Work (PoW) behind to give way to Proof-of-Stake (PoS) was nearing. There are no miners anymore, but validators, those who invested 32 ETH with the promise of getting it back once this migration is over. The big day has arrived.
Will validators withdraw all your staking?
Given the release of blocked capital, uncertainty arises about what the validators will do. It is worth noting that in December 2020, at the beginning of phase 0, the price of Ethereum was at $600 dollars, less than a third of the current price. That is why there is a possibility that some of them decide to take profits after not being able to do so for more than two years.
Although it should also be added that most of those who blocked their capital, period that lasted for several months, they are at a loss. The maximum peak of Ethereum occurred in November 2021 when it reached $4,891 dollars, according to the registry of Coin Market Cap.
If a sell-off takes place, which would cause the supply to increase, the price would suffer a reversal, however, the sector sees bullish signs. Should the update be successful, this will undoubtedly draw the attention of more unsuspecting investors to what happened.
Right now, the crypto world only sees green candles, with ETH gaining +1.5% to hit $1,885, near the top of the last three months. In the weekly accumulated it has a gain of 4.41%, which exceeds +4.30 of Bitcoin and the rest of the top 25 cryptocurrencies in the market.
“The Ethereum Shanghai upgrade is just around the corner, but this is not causing increased selling pressure as most of the locked Ether is currently in losses. Although the risk of a sell-off cannot be ignored, and macroeconomic uncertainty surrounding the update is also increasing”, explained the cryptanalysis company Blofin, quoted by News BTC.
ETH option traders are taking long positions
Blofin analyzed what happens in the options market and ensures that there is “risk aversion among investors”, which is why he predicts a “stable” market. While adding:
“Most ETH options traders are taking long positions by buying short-dated call contracts. This dynamic could support further gains for ETH.”
In their analysis, they observe that there are buyers who acquired options that expire in the first four months of 2024, the year that the long-awaited halving will take place. Bitcoin mining rewards will go from 6.25 to 3,125.
Ethereum is going through important moments and Shanghai is undoubtedly one of the most anticipated updates. Vitalik Buterin and his entire team hope that nothing fails in order to continue finding the support of their investors. So far in 2023 it is one of the most reliable assets in the digital field.
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