Gorak Shep occupies the sandy bed of a glacial lake that dried out long ago. It is the highest place on the standard route where you can sleep indoors, and almost nobody sleeps well: at 5,164 m, resting heart rates run high and Cheyne-Stokes breathing is common.
Both objectives leave from here — Everest Base Camp is a three-hour round trip across the moraine, Kala Patthar a steep two-hour climb for the view of Everest itself.
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