The Ethereum (ETH) market is on the cusp of significant correction after the new year crypto relief rally seems to be fading away. While the Ethereum prices have maintained a rising trend through higher highs and higher lows, the bulls have struggled to reclaim post-Shanghai tops of about $2,122. The king of smart contracts and the second largest digital asset by market capitalization is, therefore, likely to consolidate horizontally in the coming days before the tug-of-war between the bulls and the bears is decided.
Lido (LDO) Unlocks 270k Ethereum Units
Lido Finance, one of the largest ETH liquid staking programs, announced that the final on-chain vote for the V2 upgrade is scheduled for 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,” Lido noted.
With the V2 upgrade expected to pave the way for new Ethereum staking modules, the company opted that about 270k Ethers with approximately $500 million at current prices will be made available.
Unlocking such a huge amount of Ether at once is likely to induce sell market pressure in the short term.
ETH Price Action
The Ethereum price is sitting at a crucial support level, which suggests the buyers could be outpacing the short sellers. Notably, Ethereum price has formed a possible triple bottom on the four-hour timeframe, with a linear bullish divergence on the RSI.
However, a capitulation could occur if the Ethereum bulls struggle to hold the current support and it gets converted to a resistant zone. In that case, the next temporary solace that Ethereum can find is around $1,700 before the bulls regain control.