Technically the Shanghai upgrade is only on the execution side of Ethereum. Capella is the simultaneous upgrade happening on the consensus side. Hence the merging of the two names to “Shapella.”
The Sepolia testnet was able to successfully process staked ETH withdrawals. There is one more test on the Goerli testnet that is planned before Shanghai goes live.
"ETH has undergone a rapid change in narrative over the past week, with speculators purely focused on the upcoming 'merge' as a catalyst for appreciation," one observer said.