- Ethereum (ETH) price surges past $2,100 after the successful implementation of the Shanghai upgrade, narrowing the gap with Bitcoin (BTC).
- Institutional demand for Ethereum increases as the blockchain network makes progress.
Ethereum’s Strong Performance Post-Shanghai Upgrade
After the successful implementation of the Shanghai upgrade, Ethereum has made a significant move, with its price rising above $2,100 and gaining over 10% in the last 24 hours. This has positioned Ethereum as a strong competitor to Bitcoin, which has held the spotlight throughout 2023.
Ethereum has seen a 14% increase on the weekly chart, outpacing Bitcoin’s 10% gain during the same period. With Bitcoin up more than 80% since the beginning of the year and Ethereum gaining nearly 77% during the same timeframe, it is evident that ETH is working to close the gap with BTC.
Shapella Upgrade Impact on Ethereum Market
The Shapella (Shanghai + Capella) upgrade has enabled ETH investors to withdraw their staked coins. While many speculated that this could lead to selling pressure on ETH, the opposite has occurred in the 36 hours since the Shanghai hardfork’s launch.
Digital Asset Capital Management, a crypto fund manager, noted that the impact of allowing the withdrawal of staking rewards and initial capital “is yet to be seen,” and that they
will be watching both withdrawal and selling data closely on-chain to see if there is resulting sell-pressure.
Growing Institutional Interest in Ethereum
As the Ethereum blockchain continues to progress, demand for its native ETH cryptocurrency is also growing. Annabelle Huang, managing partner at crypto lender Amber Group, told Bloomberg, “We’re already seeing more institutional demand when it comes to Ethereum now that they can stake, unstake, more instant liquidity.”
However, crypto analysts remain divided over whether Ethereum can maintain its current price rally in the market. Macro factors will continue to influence the crypto space, and Amber’s Huang commented, “Personally, I don’t think we are out of the woods yet.”