So, in Shapshift your addresses start with 3 and in Electrum they start with 1, correct?  If so, you need to create a new wallet using Electrum, and when you're given the option select the p2sh option:

If that's the path for address index 2, just select p2sh-segwit (p2wpkh-p2sh), then do not change the displayed derivation path below.
If the balance still didn't update, you may have to enable BIP39 passphrase in Electrum as described in DireWolfM14's reply above.

When you check your balance in Shapeshift what do the addresses look like?  As TryNinja asked, do they start with 1, 3, or bc1?

The derivation path you noted is for addresses that start with 1.  IIRC the default settings in the Shapeshift software will set you up with addresses that start with 3.  Try selecting the derivation path for p2sh; m/49'/0'/0'.

There's also the chance that you have a Bip39 passphrase protected wallet.  When you connect your wallet to Shapeshift does it require a secondary passphrase to unlock your wallet?

Do you have more than one accounts in Keepkey?
If so, try create another wallet with a different derivation path, for the second account, change m/44'/0'/0' to m/44'/0'/1' for the third: m/44'/0'/2' and so forth.

Or you might have just installed Electrum for the first time because it may took a while for the balance to update (for first time install/launch).
that's because Electrum have to first download the blockheaders (52MB) in the background before it can function.