Ethereum Shanghai Upgrade: Can ETH Prices Soar Again?

After the momentous Ethereum Merge was flawlessly executed on Sep 15, 2022, the crypto market buzzed with enthusiasm as everyone wondered what was next for Ethereum. Supposedly, Ethereum’s post Merge upgrade schedule was supposed to go along the lines of the Surge, Verge, Purge and Splurge. Recently, Ethereum’s core developers have decided to detour from their original roadmap plans.

Titled the Ethereum Shanghai upgrade, the plan is for developers to include multiple Ethereum Improvement Proposals (EIPs) that will minimize any delays before EIP-4844 launches. Curious about the EIPs that the upcoming Shanghai upgrade will include? Here’s how it’ll change Ethereum for the better in the long run.

What Is the Ethereum Shanghai Upgrade?

The Ethereum Shanghai network upgrade is the next major upgrade for the Ethereum network that core developers have chosen to work on before implementing upgrades related to the Surge. As the Surge is an upgrade path that improves the blockchain’s maximum transactions per second (TPS), Ethereum developers stated that the Shanghai upgrade will ensure minimal delays and issues as they prepare for the Surge upgrade. 

Although the Ethereum Shanghai upgrade incorporates multiple EIPs, the headline improvement will be EIP-4895: Beacon Chain Push Withdrawals as Operations. In essence, the proposal grants validators the ability to withdraw staked ETH that’s been deposited into the Beacon Chain since December 2020, when the Beacon Chain was originally introduced. Ultimately, EIP-4895 plans to grant long-term ETH stakers and HODLers extra liquidity as they can finally withdraw their ETH after more than two years of staking with negligible gas fees.