Bitcoin Forum

ETH has down from ~$1640 after PoS to ~$1340 (~22%) today, and it looks like it will go down more. If you think this is alarming, you should know that the staking rewards won't be distributed before The Shanghai Upgrade is triggered (according to the initial report^[1]). Therefore, a massive dump of ETH staking rewards is still not happening yet.

However, according to Micah Zoltu, The Shanghai Upgrade won't enable the withdrawal: "Many people are shooting for Shanghai, but the core devs haven’t yet discussed what will actually be included…"^[2] This will put investor money in limbo, facing huge dump risk and uncertainty of withdrawal date.

Do you also think there will be a massive dump event?

Think about it, PoS is like printing money without massively consuming computing power like PoW, so the cost of running the validator would be cheap. Thus, the whale can easily dump on you without risking their principal.

[1] https://finbold.com/kraken-eth-unstaking-not-available-until-the-shanghai-upgrade-in-6-months/
[2] https://www.vesterholdings.com/news/ethereum-developer-confirms-shanghai-upgrade-will-not-unlock-staked-tokens/

To be fair, the dump was expected especially given the fact that ETH pumped more than most coins as the date of the merge approached. People were buying ETH because they didn't want to miss out on the Forked coins. As soon as the merge was done, there was no more short term use to keep buying or holding ETH so cashing out at the best price possible by many traders only meant that the price would drop. A 22% drop spread across over 96 hours from the merge date isn't so bad

I think the price will gradually drop to a strong support level like but not massively

Before any fork or upgradation, we see the buying trend whether its BTC halving or any upgradation most of the investors or traders takes it positively so they keep buying until the upgrade happens and when upgradation is done most of them sell it so the dump is expected after Ethereum merge. I believe Ethereum is still not stable and it will go down a little more but I don't think so we will see a massive dump from the current level.

There is no unlock date for staked ETH, there may never be. Long term, I'm much more bullish on ICP than Ethereum because ICP should pump when BTC and ETH are fully integrated on mainnet in Q4/Q1.