With the successful implementation of the Shanghai and Capella Hard Fork, the second largest cryptocurrency in the world, Ethereum, has shown very positive movement in just two days, where prices went from around $1,900 to $2,100.
This rally in the largest altcoin has brought a glimmer of hope to the broader cryptocurrency market, which lost its biggest share in last year's bear run. Ethereum is currently trading at an 11-month high, with a rally close to 65% in 2023.
Ethereum hits $2,100, climbs to 11-month high
The second largest cryptocurrency in the world, Ethereal, has witnessed a strong bullish move in recent weeks that has attracted many investors and speculators in the crypto market. Very similar Bitcoin, Ethereum (ETH) has been rallying aggressively. It is hovering around the crucial $1,900 levels and is aiming to touch $2,220, in the near term.
In the last 24 hours, ETH has risen to its 11-month high of $2,134.71 and has shot up almost 12% in the past week. Let's take a look at the Ethereum price chart showing the rally seen over the past seven days.
Ethereum price chart: seven-day movement
(As of April 18, 2023)
Source: Coinmarketcap
The steady rally in ETH has been witnessed due to the much anticipated โShanghaiโ and โCapellaโ updates of ETH, which went live on April 12, 2023, opening the doors for investors to withdraw their locked funds that were they had previously bet.
According to crypto data firm CryptoQuant posting these updates, crypto exchanges have received a whopping 179,500 ether (ETH) net inflow in just four days, which equates to about $375 million.
Ethereum Rallies after the "Shapella" Update
On April 12, 2023, the Ethereum blockchain successfully and smoothly implemented a long-awaited upgrade, "Shanghai" and "Capella", which is expected to improve the performance of the ETH mainnet, its security layers and its efficiency.
Not only this, the Ethereum upgrade could also help reduce gas fees for the operations of Layer 2 solutions running on top of Ethereum. This, in turn, could make Ethereum a much more attractive blockchain with cheaper and faster transactions and will ensure smooth running of Web3 applications.
The new updates have also increased the possibilities of staking ETH directly with the Ethereum blockchain instead of using the liquid staking protocol. It also means that staking coins on the Ethereum mainnet will provide the opportunity for passive income. The new update will also make it easier for validators to withdraw their ETH through the partial or full withdrawal facility.
Therefore, the Shanghai update will allow participants to withdraw their funds from the Beacon Chain network, which is part of the "Proof of Work". โShanghaiโ will improve Ethereum execution clients which will be done in parallel with a consensus client update dubbed โCapellaโ. Together these updates are known as "Shapella".
The Shapella (Shanghai + Capella) upgrade has played a pivotal role in changing the ETH landscape significantly. In the future, not only investors, but also blockchain developers and regulators will also take notice of these crucial developments.
Main Ethereum developments
How should investors approach this ETH rally?
No doubt, after these upgrades, Ethereum is poised to attract more institutional funds by virtue of its robust ecosystem and efficient blockchain operations. Ethereum now promises a kind of rock-solid network stability that can handle the new range of utilities and services without a hitch.
Right now, ETH has comfortably broken above the $1,700 resistance level and is now hovering around the $1,900 and $2,100 levels. Experts believe that as long as ETH price manages to hold above $1,900, any kind of positive news will boost prices and we can expect the upward trend to continue.
However, the sudden rally of ETH could consolidate the prices a bit due to the sell-off in the market, but in the future, a bullish action could be brewing in the future of the token.
Also, the Relative Strength Index or RSI on the ETH Token chart is temporarily bullish at 58, which clearly indicates that the token has not yet been overbought and therefore this indicator also suggests a rise in ETH prices. .
Experts also believe that for crypto investors, sustaining this rally could yield fruitful results in the short term. However, doing extensive research before investing in the ETH token is crucial for optimal results.
Like Bitcoin, investors are advised to also be cautious with Ethereum and only park their money after thoroughly understanding recent developments.
Bottom line
While most cryptocurrencies, including Bitcoin, are trading in the green due to encouraging US inflation data, the Shanghai update has boosted overall crypto market sentiment.
Ethereum, which has witnessed a strong advance since early 2023, hoping to catch up with hard fork updates on its mainnet. Nonetheless, this anticipation has helped ETH reach one of its highest positions in 2023 and technical indications also suggest that the rally may continue.
Undoubtedly, the โShapellaโ update has been released to create more opportunities in Ethereum and make it a tradable marketplace that will be supported by developers, investors, and visionaries to create more vigorous and distinguished products.
