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HomeCrypto NewsMarketEthereum Price Increases Post Shanghai Upgrade Despite Withdrawal Rumors

Ethereum Price Increases Post Shanghai Upgrade Despite Withdrawal Rumors


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The rumor was that Ethereum (ETH) Shanghai Upgrade would make users withdraw staked ETH and dump it into the market.

However, the ongoing scenario is totally against the rumor. Data shows that despite removing the withdrawal limitation, more Ethereum is being deposited than withdrawals.

ETH Withdrawals

Investors have withdrawn over 141,000 Ether, with withdrawals on Lido accounting for 56% of the total.

Ethereum (ETH) investors had to wait six months after the Merge before the Shanghai Upgrade, which allowed them to withdraw their staked ETH tokens. Barely 16 hours after the Shanghai Upgrade was finalized, investors have withdrawn over 141,000 ETH.

Blockchain surveillance resource Lookonchain took to Twitter today to highlight the growing pace at which investors withdrew their assets. 


At the time of disclosure, the total number of withdrawn ETH stood at 111,378 ($216.3 million). Of this figure, withdrawals on Lido, a liquid staking protocol, amounted to 63,695 ETH, representing 57.2% of the total amount withdrawn.

A few hours after Lookonchain’s disclosure, these figures increased. The total number of withdrawn ETH tokens currently stands at 141,086 ($280 million), which continues to increase. Moreover, Lido now accounts for 80,018 ETH. Lido’s figure represents 56.7% of total withdrawn tokens.

Moreover, Lookonchain called attention to a wallet identified to be the largest single withdrawal address. The address withdrew 4,443 ETH ($8.7M). On-chain data suggests that this whale address staked a whopping 6,176 ETH last September when the asset traded at $1,640.


Despite the increasing pace at which investors are withdrawing their Ether, data from Etherscan shows that over 18.1 million ETH tokens ($36.2 billion) are currently staked. This figure includes accrued rewards. Staking rewards have surpassed 1 million ETH tokens.

Validators have two withdrawal options: partial or full withdrawal. In partial withdrawal, validators only withdraw their rewards; in complete withdrawal, they withdraw all their tokens (staked ETH and rewards). Partial withdrawals are processed quicker than full withdrawals. Currently, 19,869 validators with 713,195 ETH await full withdrawals.

Impact on Ethereum Price

ETH continues to register gains despite earlier concerns that a surge in withdrawals and selloffs could impact the asset’s price when the Shanghai Upgrade is complete. According to OnchainDataNerd, ETH rallied by 5% to an approximate value of $2K shortly after Shanghai occurred.


Citing data from IntoTheBlock, he highlighted a concentration of buyers between the prices of $2,096 and $2,154. Notably, these investors are still registering losses on their holdings. The question plaguing the market now is if these investors will sell off their assets at a break-even price when ETH hits the $2.1K level or if they will retain their holdings. ETH is currently trading for $1,985, up 6% in the past 24 hours.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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