Excitement is building for the new Ethereum (CRYPTO: ETH) upgrade, known as Shanghai, which is tentatively planned for March. However, investor anticipation of this new Ethereum tech upgrade reminds me a lot of what happened with the Merge in 2022. This turned out to be a case of "buy the rumor, sell the news" -- the price of Ethereum increased briefly over the summer but began to slide as we got closer to The Merge. The big returns investors had hoped for never materialized, and Ethereum is now up less than 5% since the day of The Merge.

Will the same thing happen with the Shanghai update? If you're thinking of buying Ethereum now, here's what you need to know.

The first thing investors need to understand is that the Shanghai update is just one in a long series of updates that Ethereum has planned over the next few years. To get the Shanghai update to ship on time, Ethereum developers have agreed to delay some planned improvements and enhancements to focus on just a single vital feature: the enabling of staking withdrawals.

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Source Fool.com