The Ethereum Shapella upgrade is underway and will start working on Wednesday, April 12th. ETH price broke the resistance at $1,900 with an upside target at $2,000.
Bloomberg analysts assessed possible issues with releasing user coins from ethereum network nodes.
price Ethereum close to $2,000
Despite the growing uncertainty exposed by the unlocking event, ETH price broke the key resistance at $1,900. As a result, the price hit a 24-hour high of $1,936 before pulling back. Analysts have been evaluating the charts, noting that there is little resistance between $2,000 and $2,500.
Technical expert CryptoJelleNL predicts a rally to $2,500 when the price breaks the $2,000 resistance level.
ETH price chart | Source: Tradingview
The 1.821 and 1.882 levels are two key points in ETH’s uptrend. In the event of a correction, the price could drop to these two levels. According to analyst Justin Bennett, a sustained break above the key resistance at $1,944 could take the top market cap altcoin to its $2,000 target.
According to Bloomberg analysts, ETH is likely to face selling pressure as it unlocks tokens. Many experts have identified challenges that nodes in the network may face when returning funds to users after unlocking ETH.
Ethereum stand up Against the Risk of the “Storm”
For the first time since 2020, ETH2 deposit contract stakers have the opportunity to unlock tokens. So this is a key event for ETH to upgrade through Shapella. In addition, ETH holders need to be prepared for “chaos” for the technical challenges faced by the nodes and validators participating in the unlocking.
The Shapella upgrade has been successfully tested on the Goerli testnet, however, it remains to be seen how effective the rollout on the Ethereum mainnet will be. Nodes are likely to encounter challenges that take time to resolve, adding uncertainty to upgrades.
Major wallet investors on the Ethereum network continued to accumulate Liquid Staking tokens ahead of the upgrade.
Holder ETH reduce risk first shelf Upgrade Shapela
ETH/BTC means holders eliminate risk before upgrading Shapella. ETH/BTC recently hit new year-to-date lows following a successful upgrade on the Goerli testnet. Therefore, it is likely that the holder community has digested the negative impact of the token unlock event on ETH.
ETH/BTC Price Chart 1 Date | Source: Tradingview
Why a whale? Ethereum hunt i would like?
The story of liquid collateralized tokens dovetails with ETH whales looking for tokens like Lido Finance’s LDO. This means large wallet investors are likely to run and collect tokens for the liquidity staking protocol ahead of the upgrade in hopes of restoring it before Shapella.
1 / of #Ethereum #Shanghai The upgrade is coming, are whales/SmartMoneys a buy or a sell #hallucinogens Token?
We analyzed the tokens of the 3 protocols with the most TVL. 👇$LDO $RPL $FXS pic.twitter.com/cm5TwXj0zc
— Lookonchain (@lookonchain) April 10, 2023
ETH whale behavior is positive for the asset in the short term.
LSD token token battle and decentralized finance more than Ethereum
Upon successful completion of the Shapella upgrade, the ETH unlocked from the Beacon Chain will be released into circulation. At this point, the community and holders will prioritize security when deciding on the liquidity staking platforms available in the market. After security, rewards and ease of staking/unstaking may come into focus when ETH holders decide where to stake.
While Liquid Staking Derivatives (LSD) and DeFi protocol tokens vie for the soon-to-be-unlocked ETH, it remains to be seen whether the upgrade has already been priced in, or if the token has the potential to rise further, like LDO.
Chen Zhuling, founder and CEO of RockX blockchain node network, said:
“At this stage, it is difficult to say whether liquid collateral tokens will be priced when Shapella upgrades. However, due to the overall stability of the major platforms, it is reasonable to assume that they will continue to do so without any major industry developments. For example, The top LSD token is up a whopping 150% so far in 2023, while ETH is up close to 65%.”
As a result, the community sees promise in liquidity staking, the second largest cryptocurrency sector with over $14.1 billion in total locked value, signaling a significant role in the currency ecosystem. electronic.
Does Shanghai not affect the price of ETH?
Brian Mosoff, chief executive of tech firm Ether Capital, said the Shanghai hard fork may not have a major impact on the price of ether.
“I doubt it will affect prices.”
Through the upgrade, users will be able to withdraw their staked ETH to participate in the Ethereum blockchain consensus system. However, the market remains concerned that the soon-to-be-unlocked ETH, sent to bolster network security in exchange for rewards, will lead to hasty liquidations and trigger ETH price pressure. .
But Mosov said that trading in the second-largest cryptocurrency by market capitalization could look different in “a few months.”
“I think you’ll see more ETH being staked, from a single staker, or you’ll see more structured products coming into the market.”
According to Mosoff, the network upgrade could also attract a new group of investors.
By offering new investors the ability to earn some profit on their staked ETH, “you’re going to see traditional finance start to enter the space with more confidence.”
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