Ethereum network’s major upgrade Shapella is slated to occur on Wednesday as the altcoin makes strides towards its $2,000 target.
Analysts speculate likely issues surrounding the upgrade, including challenges faced by nodes returning user funds.
Ethereum whales are accumulating Liquid Staking tokens like LDO ahead of the upgrade, likely front-running the upgrade.
Ethereum (ETH) blockchain’s Shapella upgrade is on track and set to go live on Wednesday, April 12. ETH price tackled resistance at the $1,900 level, eyeing the $2,000 bullish target.
Bloomberg analysts evaluated the likely issues surrounding the issuance of user funds by nodes on the Ethereum network.
Ethereum price inches closer to $2,000 in an explosive move
Ethereum price crossed key resistance at the $1,900 level despite the rising uncertainty of token unlock. ETH hit a 24-hour high of $1,936 before its recent pullback. Analysts evaluated the Ethereum price chart and noted there is virtually no resistance between the $2,000 and $2,500 levels.
$1,821 and $1,882 are two key levels for Ethereum’s uptrend. In the event of a correction, ETH price could be nosedive to these two levels. A sustained break above the $1,944 level could send the altcoin to its $2,000 target, according to crypto analyst Justin Bennett. The $1,944 level has acted as key resistance for the altcoin.
Analysts at Bloomberg believe Ethereum is likely to face selling pressure with the token unlock. Experts identified the challenges that nodes in the network are likely to face in returning user funds post ETH unlock.
Ethereum at risk of “turbulence”
Token unlock is available for stakers of the ETH2 deposit contract for the first time since 2020. This makes it a key event for the altcoin, in the Shapella upgrade. What’s more, Ethereum holders need to brace for “turbulence” from technical challenges faced by nodes and validators participating in token unlock.
The Shapella upgrade was tested smoothly on the Goerli testnet, however it remains to be seen how the roll-out on the Ethereum mainnet turns out. There is a risk of nodes facing challenges that take time to resolve, adding to the uncertainty surrounding the upgrade.
Ethereum network’s large wallet investors have continued accumulation of Liquid Staking tokens ahead of the upgrade.
Why Ethereum whales are scooping up LDO
The Liquid Staking tokens narrative gained relevance with Ethereum whales scooping up tokens like Lido Finance’s LDO. This implies large wallet investors are likely front-running the upgrade and scooping up tokens of Liquid Staking protocols in anticipation of a rally, ahead of Shapella.
