The price of Ethereum’s Ether (ETH) token edged toward $2,000 a day after the launch of the network’s long-anticipated Shapella upgrade.
Ethereum ducks sell-the-news fears
On April 13, Ether’s price gained roughly 4% to reach an intraday high of $1,996 on Coinbase, ignoring the potential sell-off pressure the Shapella upgrade could potentially bring to the market.
ETH/USD daily price chart. Source: TradingViewTo recap: The Shanghai hard fork, also known as “Shapella,” enables users to withdraw their ETH from Ethereum’s proof-of-stake smart contract.
As of 9:00 am UTC on April 13, over 98,000 ETH worth around $194.8 million has left Ethereum’s voting balance reserves since the Shanghai launch a day ago, according to Nansen. In other words, nearly $200 million in potential selling pressure has entered the market.
ETH deposits vs. withdrawals. Source: NansenBut Ether’s price rise since Shanghai suggests that the market has had no problem absorbing any selling pressure arising from this event so far. It’s also possible that most users have decided to hold onto their ETH staking rewards rather than sell them in anticipation of further gains.
