ETH topped $1,900 for the first time in more than seven months, a week before withdrawals were activated in the next major update for the second-largest cryptocurrency by market capitalization.
Source: TradingView
The last time ether topped $1,900 was on Aug. 16, 2022, when the U.S. Federal Reserve raised the federal funds rate at a record pace to fight inflation, sparking a broader sell-off in cryptocurrencies, according to CoinMarketCap. .
The Ethereum Shanghai hard fork, scheduled for April 13 (UTC), will implement Ethereum Improvement Proposal (EIP)-4895 — allowing validators and stakers to withdraw staked ETH from the Beacon Chain — along with other EIPs, Designed to help speed up transactions while reducing transaction fees.
The recent price increase could be due to expectations that the Federal Reserve may ease its quantitative tightening measures, as rate hikes cause cracks in the global banking sector, or increased demand for Ether.up, as collateral is expected to be more flexible.
While bitcoin has also rallied recently, ETH/BTC — a trading pair that compares ETH to BTC prices — was up nearly 3% last week, according to TradingView, suggesting that both factors may be contributing to the rise. The price of ether has an impact. Soaring.
ETH has rebounded steadily against BTC over the past few days
Still, though, just expect this to be nothing more than a swinging chance, profits should turn back to BTC before the $30K breakout and the ratio trend reverses bearish again pic.twitter.com/MOe1GlibaX
— KALEO (@CryptoKaleo) April 5, 2023
Shanghai refers to the fork of the execution layer client, while Capella is the name of the consensus layer client upgrade, which will go live shortly after Shanghai on April 12.
The execution layer is where all smart contracts and protocol rules reside, while the consensus layer ensures that all network validators follow those rules.
It is worth noting that the price of ETH plummeted after the Merge was executed on September 15, 2022, losing nearly a quarter in a week.
While some analysts and traders have suggested that unlocking staked Ether will generate selling pressure, what will happen after the Shanghai and Capella updates is currently speculation.
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board take
As reported by Cointelegraph
