The world’s second-largest crypto by market cap, EthereumETH

, is flirting around the $1.9K level — its highest level in nearly 8 months.

• The token is up ~91% since last June (with lots of volatility along the way).
• It’s managed to survive several crypto implosions, the collapse of FTX and March’s banking crisis.

The next major event: Another major upgrade (Shanghai) is expected to arrive in April — completing its transition to proof-of-stake.

What does the upgrade mean forETH

holders?

Staking allows users to lock up theirETH

to earn interest. With the upgrade, staked Ether can now be withdrawn.

~$34B (15% of the total ETH supply) will become available to sell — which could add selling pressure to the token.

And it’s become one of the biggest debates in crypto: WillETH

holders sell or not?

The bear case: Selling pressure could come from crypto platforms (i.e., Kraken), which is facing scrutiny from US regulators. Celsius is also expected to sell their stakedETH

holdings as part of bankruptcy proceedings.

The bull case: K33 Research doesn’t think a big selloff is coming — saying $2.4B could be sold — a small amount compared to 20% ofETH

’s daily trading volume.

• Saxo Bank’s crypto analyst Max Eberhardt says the large share of ETH stakers are long-term holders unlikely to sell after the upgrade (CoinDesk).
• The selling pressure could also be offset by buyers seeingETH
  as more attractive after the upgrade.

Other ETH updates: The total supply ofETH

has fallen 0.118% since the merge last September.

The token is now deflationary — like a company that only buys back its own stock or a deflationary currency (but we know those don’t exist).