- Lido has announced that 270,000 Ether will be unlocked after May 15, likely increasing the selling pressure.
- The Ethereum likely to be unlocked is equivalent to $500 million at the current price of $1,852.
- ETH price is likely to struggle with selling pressure from mass withdrawals.
Staking protocol Lido announced late Monday that its version 2 update will go ahead on May 15. The update will unlock direct in-protocol Ether withdrawals and enable withdrawal requests.
Also read: Ethereum battles intense selling pressure from spike in ETH deposits to crypto exchanges
Ethereum worth $500 million to be unlocked soon
Lido, a Decentralised Autonomous Organization (DAO) and a liquid staking protocol, said that the update will go ahead on May 15 if it gets the community’s green light in a three-day vote:
A Lido V2 update:
— Lido (@LidoFinance) May 8, 2023
The final on-chain vote for the V2 upgrade is scheduled for this Friday, May 12th.
If no last-minute findings are surfaced and the vote is successful, Lido V2 will be live after the vote enactment on May 15th ️
If approved, the move will allow users holding staked Ether (stETH) to exchange it for Ethereum, leading to a withdrawal of nearly 270,000 Ether. Lido will fulfill initial withdrawal requests without any additional waiting time for users.
At the current price of $1,852, the unlock will amount to more than $500 million in Ether. The unlocking of such large volumes of Ethereum is likely to increase the selling pressure on ETH.
Although the exact quantity that will be unlocked isn’t clear yet, a big amount could lead the altcoin’s price to suffer selling pressure across exchange platforms.
Ethereum price likely to face further declines
Ethereum price is in an uptrend that started in June 2022. ETH price is close to the 23.6% Fibonacci level of $1,838. The altcoin’s price fell sharply from the 2023 peak of $2,134. In the event of a decline, Ethereum price could find support at $1,733 and $1,640, two levels that have previously provided a base to the altcoin.
Ethereum’s 200-day Exponential Moving Average at $1,687 is another key support level for the native token of the smart contract network.
ETH/USD one-day price chart
If Ethereum price breaks past resistance at $2,015, its bullish target is the 2023 peak of $2,134. Likewise, a decisive close above the $2,015 resistance would invalidate the bearish thesis
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.