Ethereum (ETH-USD) prices are rising today as crypto markets adjust to a significant development. The crypto’s Shapella upgrade, long-awaited by fans and investors, is officially live, and investors who had previously staked ETH crypto in the blockchain network can finally withdraw it. The Shapella upgrade refers to the Ethereum Shanghai and Capella forks. It took effect on April 12, upgrading the execution and consensus layers of the network at epoch 194,048 in order to support withdrawals on the Beacon Chain, the original proof-of-stake (PoS) blockchain launched in 2020. Ethereum prices have been rising steadily since the upgrade and show no signs of slowing down.
What does this mean for the future of the crypto and its network? Let’s take a closer look at what investors should be expecting.
What’s Happening With ETH Crypto
As of this writing, Ethereum prices are up more than 4% for the day and look poised to continue climbing. While ETH crypto has been relatively volatile over the past month, it has overall performed very well and remains firmly in the green. Its recent surge aligns with a forecast from InvestorPlace contributor William White, who speculated that the Shapella upgrade could easily spark a rally. He noted that expert ETH price predictions were primarily bullish leading up to the upgrade.
Given the importance of this development, it’s not surprising that ETH would be responding well to Shapella. It represents the first major upgrade since The Merge, under which the network transitioned from a proof-of-work (PoW) to PoS consensus and reduced its energy consumption by 99%. Per The Defiant:
“Shapella is a major step in Ethereum development, introducing vital functionality to the network. ETH stakers, responsible for securing the Ethereum blockchain, are now able to withdraw their crypto from the Beacon Chain for the first time, 28 months after staking first went live, as part of Ethereum’s transition to the Proof of Stake consensus algorithm from Proof of Work.”
As of now, it is unclear what will happen to ETH crypto in the long run following the upgrade. Leading up to it, the possibility of a mass exodus was raised, as investors now have the option to withdraw. However, it should be noted that investors who keep their crypto in the network will have the potential to reap even more awards. By that logic, it is unlikely that operators will withdraw in numbers significant enough to push Ethereum prices down.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
