ETH Reacts Surprisingly to Staking Withdrawals After Shapella Upgrade

• Ethereum successfully implemented the Shapella (Shanghai and Capella) upgrade on mainnet on Wednesday, enabling staking withdrawals.
• Since then, ETH has been trading flat and is currently at $1,913, down 0.2% on the day.
• Huobi is the largest entity currently able to withdraw its ETH from staking rewards with 39,776 ETH.

Ethereum Shapella Upgrade Activated

The Shapella upgrade hit Ethereum mainnet on Wednesday at 11:27 PM UTC, marking the full implementation of the proof-of-stake consensus mechanism on Ethereum. Users can now enter and exit the staking program whenever they want.

ETH Reacts to Staking Withdrawals

Many thought that once the Shapella upgrade was live, the price of ETH would instantly dump – however, it has had a different reaction to this monumental occasion. Withdrawals have been enabled since Wednesday at 11:27 PM UTC with 73,214 ETH withdrawn so far.

Largest Entities Able To Withdraw

Justin Sun’s exchange Huobi is currently able to withdraw 39,776 ETH from staking rewards while PieDAO can withdraw 27,270 ETH and Kraken 19,616 ETH. The total amount of validators waiting to exit fully is 19,621 out of 567209 validators in total who have already exited making up just 0.1%.

Potential Impact Of Selling

With more withdrawals speeding up and more validators able to exit fully from the staking program there could be potential selling which could lead to a drop in price for ETH in future markets.

What Is The Shapella Upgrade?

The Shapella upgrade is one of Ethereum’s largest upgrades in history and will enable users to enter and exit from their respective staking programs without any long term commitment or lockup period for their assets – allowing them greater flexibility over their investments than ever before!