- Ether has surpassed the $1,900 resistance level for the first time in over seven months.
- This price increase comes a week before staking withdrawals are enabled in the upcoming Ethereum Shanghai hard fork.
Ether, the second-largest cryptocurrency by market capitalization, has recently broken the $1,900 resistance level for the first time in over seven months. At the time of writing, Ether is currently sitting above $1,911, according to CoinMarketCap. The recent price increase may be due to a combination of factors, including increased demand for Ether as staking is slated to become more flexible and the expectation that the Federal Reserve may ease up on its quantitative tightening efforts.
Ethereum Shanghai Hard Fork to Improve Staking Flexibility and Transaction Speeds
The Ethereum Shanghai hard fork, set to occur on April 12, is expected to implement EIP-4895, allowing validators and stakers to withdraw staked ETH from the beacon chain, among other EIPs. This may have contributed to the recent price increase in Ether, as staking withdrawals are set to become easier and more flexible. Additionally, the recent increase in the price of Bitcoin may also be contributing to the price jump in Ether.
The Capella upgrade on the consensus layer client side is set to be executed shortly after the Shanghai hard fork. The consensus layer ensures that all network validators follow the smart contract and protocol rules set out in the execution layer. Some analysts and traders have suggested that the unlocking of staked Ether may create sell pressure following the upgrades, but this is currently speculation.
Ether’s price dropped sharply following the execution of The Merge on September 15, 2022, where it lost just under a quarter of its value in one week according to CoinMarketCap. Therefore, it is worth noting that the future price of Ether following the Shanghai and Capella updates is currently uncertain.
Uncertainty Surrounds Ether’s Future Price Following Upcoming Upgrades
While the recent price increase in Ether is promising, uncertainty surrounds the future price of Ether following the Shanghai and Capella upgrades, particularly as some analysts and traders suggest that staked Ether withdrawals may create sell pressure.