Over the past few days, Ethereum, the second-largest cryptocurrency, has been experiencing a tug-of-war between its bulls and bears. However, the bulls seem determined to make significant gains and surpass the major resistance level of $2000, while the bears are putting up a tough fight and driving down the price.
Nevertheless, there has been a notable price rally in the past month, as the ETH price surged from a low of $1,423.26 to a daily high of $1,853.89. According to the data from CoinGecko, the price has seen an 8.5% increase in value over the past 30 days.
As per the CoinMarketcap’s data, ETH is currently trading at $1,771.96, but both the daily and weekly charts are indicating a downward trend. Interestingly, a renowned crypto analyst, ALI, has recently made a prediction that Ethereum is on the verge of a breakout.
In a tweet, he mentioned that ETH had regained a crucial support level between $1,700 and $1,780, where 1.41 million addresses have bought 6.48 million $ETH. He further added that if this level remains unbroken, there is a high possibility of further upside momentum, considering the lack of resistance ahead.
Shanghai Upgrade: Anticipated Boost To Ethereum Price
The Ethereum network is preparing to launch its next upgrade, the Shanghai upgrade, on April 12, 2023. The upgrade is expected to significantly impact the price of Ethereum, potentially driving it up to over $2000.
One of the key benefits of the upgrade is that it will unlock the ether that has been staked since the Merge, which occurred in September 2022. It will create new liquidity options for ETH holders, allowing them to withdraw their staked ETH and potentially increase demand for staking ETH.
However, some investors are concerned that the new liquidity options will increase selling pressure, which could drive down the ETH price. Currently, there are 16 million ETH staked, which will be available for withdrawal once the Shanghai upgrade is live.
The cryptocurrency’s holders have two options for withdrawal. First, they can withdraw only the rewards they’ve earned from their validator nodes. Second, they can exit their validator nodes entirely, withdrawing the 32 ETH required to run a validator.
As per the report, analysts have attempted to predict the demand for ETH withdrawal, but it’s difficult to predict accurately as human emotion and market sentiment will come into play. The success of the Shanghai upgrade and its impact on the price of Ethereum remains to be seen.
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