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Executive Summary: Ethereum's Shanghai Upgrade — Everything You Need To Know

In this article, I explain the upcoming Ethereum Shanghai upgrade that will enable unstaking and withdrawal of staked ETH, analyzing the impact on Ethereum as a network, ETH price, validators, liquid staking providers, and what comes next in Ethereum's roadmap.
Executive Summary: Ethereum's Shanghai Upgrade — Everything You Need To Know

Summary: The upcoming Ethereum Shanghai upgrade will enable withdrawals of staked ETH, making Ethereum a full proof-of-stake chain, while having a limited impact on ETH price due to controlled outflows.

What is the Shanghai upgrade:

  • Hard fork upgrade to enable unstaking and withdrawing staked ETH
  • Makes Ethereum a true PoS chain after The Merge

How Shanghai works:

  • Implements unstaking policy via EIP-4895
  • 6 validators can fully withdraw per epoch, partial withdrawals also enabled

Impact on Ethereum:

  • Decreases tech risk, expected to boost staking ratio
  • Makes Ethereum more decentralized and secure

Impact on ETH price:

  • Most staked ETH currently underwater
  • But controlled outflows limit selling pressure

Impact on validators:

  • Can withdraw staked ETH and accrued rewards
  • Enables exiting from staking if desired

Impact on liquid staking:

  • Still relevant for small stakers and DeFi uses
  • Expected to grow in popularity after upgrade


  • Targeted for March 2023
  • Successful testnet dress rehearsal done

What's next:

  • Sharding aimed at boosting throughput

Full article:

Ethereum’s Shanghai Upgrade — Everything You Need To Know | CoinMarketCap
With the Ethereum Shanghai upgrade slated to happen sometime in Q1 2023, here’s what you need to know leading up to the hard fork.