Lido Version 2 rollout on the Ethereum mainnet likely to be a sell-the-news event
- Lido V2 upgrade on the Ethereum mainnet will be released Monday as a governance vote is set to pass.
- The rollout will enable direct in-protocol staked Ether to Ethereum withdrawals, paving the way for new staking modules.
- LDO price rose 16% over the past week, but could fall after the upgrade is available.
Lido V2 upgrade’s final on-chain voting concludes on Monday. If the vote is successful, the protocol will allow withdrawals of staked Ether in exchange for the stETH tokens.
LDO price, at $2 at the time of writing, is rallying ahead of the launch on the Ethereum mainnet, yielding 16% gains for holders over the past week.
Lido community set to give greenlight to the upgrade
Lido V2 voting ends on Monday, and the proposal is currently approved with 5.95% votes in favor of the rollout. The vote, which lasted for three days, finishes on May 15 at 23:45 GMT, while the objection phase ends within the next six hours.
Lido V2 proposal vote
Once the vote enactment is complete, Lido Version 2 will go live on the Ethereum mainnet. The protocol will open staked Ether (stETH) to Ether (ETH) withdrawals, paving the way for new staking modules.
After the upgrade, 270,000 Ether from Lido’s vault will be available for withdrawal, and the protocol will fulfill initial withdrawal requests without a lengthy validator exit process. This implies withdrawals will be serviced within the first three days after the rollout of the upgrade.
LDO price rallies ahead of key Ethereum mainnet implementation
Lido DAO price climbed 16% over the past week, partially rebounding from a downtrend that started in March. LDO is tackling resistance at the trendline level of $2.114. The next immediate resistance is the 23.6% Fibonacci level at $2.728, from LDO’s sharp decline between February and April.
LDO price has climbed above three key long-term 10-day, 50-day and 200-day Exponential Moving Averages (EMAs) at $1.930, $2.131 and $2.019, respectively. In the event of a decline, LDO could touch $1.490, a support level seen throughout 2023.
LDO/USD 1D price chart
A fall below the three long-term EMAs and the support level at $1.490 could invalidate the bullish thesis for LDO price. The Lido V2 rollout could end up as a sell-the-news event and LDO price could decline with the mainnet launch of Lido’s version two.
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.
