Ether rallied past $2,000 for the first time since August after a widely anticipated software upgrade to the most commercially important blockchain went according to plan, and as worries of initial rapid outflows proved unfounded. The so-called Shanghai, or Shapella, update enables investors to queue up to withdraw Ether coins they had pledged to help operate the Ethereum network in return for rewards, a process called staking. And so far, 96% of withdrawal volume has been from users withdrawing their rewards instead of their entire stakes.
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Crypto’s Ethereum Network completes key software upgrade without a hitch
“This could still be volatile,” said Noelle Acheson, author of the “Crypto Is Macro Now” newsletter. “There is a queue forming for ETH withdrawals, and the looming sell pressure from Kraken, Celsius and others — that have to un-stake” but the “overall liquidity situation is favorable for crypto assets.”
