Ethereum Shapella upgrade is successful, debate ensues on whether ETH is a security
- Ethereum network’s first 5,757 withdrawals have been successfully processed post the completion of the Shanghai upgrade.
- More than 17,000 ETH tokens worth $32.7 million were withdrawn by validators.
- Experts note that buyers were waiting on the sidelines on exchanges like Coinbase to push the price up in response to a smooth hard fork.
Ethereum completed its Shanghai upgrade, a smooth transition that enabled EIP-4895, for ETH token unlock. The first 17,000 ETH tokens lined up for withdrawal, without negative impact on Ethereum price.
Also read: Ethereum (ETH) Shanghai upgrade could have this impact on Ether
Ethereum completes Shapella upgrade, unlocks first 17,000 ETH
Ethereum’s most significant upgrade since the Merge increased anticipation in the crypto community. Holders expected a decline in Ethereum price, a knee-jerk reaction from ETH holders and a rise in selling-pressure on the asset.
The successful completion of the Ethereum upgrade propelled ETH price higher. The altcoin’s price stayed above key resistance at the $1,900 level. The first 17,000 ETH tokens were unlocked from the ETH2 deposit chain.
#Ethereum Shanghai upgrade is complete.
— Spot On Chain (@spotonchain) April 13, 2023
From on-chain data, the first 5,757 withdrawals have been processed, and 17,091.03 $ETH ($32.7M) were withdrawn. pic.twitter.com/bKPjxqi95t
Despite the token unlock, there was no immediate selling pressure on the altcoin or a negative reaction from the ETH holder community.
Buyers lined up to push ETH higher
Lucas Nazzi, crypto analyst and expert argues that buyers had lined up on exchanges like Coinbase. These traders were waiting on the sidelines to see whether the Ethereum upgrade was successful and pushed the asset higher in response to the implementation.
The $ETH upgrade went well.
— Lucas Nuzzi (@LucasNuzzi) April 13, 2023
Big spot orders on Coinbase pushing prices up. Looks like there were buyers waiting on the sidelines to see how it went (left).
Meanwhile, 15.1k ETH (~300M USD) have been withdrawn, which is not an insignificant number, but still below expectations… pic.twitter.com/GYnpqpW3ad
Ethereum price continued its uptrend post Wednesday’s CPI release and the Shapella upgrade, fueling confidence among ETH holders. Post the successful completion of Ethereum's Shapella upgrade, experts are debating whether the altcoin is a security.
John Deaton addresses whether Ethereum is a security
Deaton told Real Vision Crypto in a recent interview that regulators consider Ethereum a security since its transition to "Proof-of-Stake" (PoS). However, there is no definition of what is "sufficient" or "insufficient" decentralization and this makes it challenging to decide whether Ethereum is or isn't a security. Once the Congress and regulators have an explanation for why PoS is less decentralized than Proof-of-Work, it would help experts determine whether Ethereum could be defined as a security.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
