Ethereum, the second-largest cryptocurrency by market capitalization, has recently undergone a major upgrade known as the Shanghai upgrade. This upgrade has been long-awaited and anticipated by the cryptocurrency community. As a result, the price of Ether, Ethereum’s native currency, rallied above $2,000 for the first time in eight months. Investors are now looking forward to the next bull run in the crypto market.
The Shanghai upgrade allows Ethereum stakers to withdraw their funds after a two-year lock-up period. This has led to some uncertainty among investors, who were concerned about a potential sell-off and its impact on the price of Ether. However, the withdrawal process is not instant and it takes time for the staked ETH to enter the market. Moreover, according to CryptoQuant, much of the staked ETH is currently at a loss, which means investors are not sitting on extreme profits.
Despite the initial uncertainty, the market reacted positively to the Shanghai upgrade. Ether advanced more than 10% to reach as high as $2,130, its highest level since May 2022. Bitcoin also gained about 3% to reclaim the $30,000 level, rising as high as $30,995, its highest level since June. This suggests that the crypto market is gaining momentum and investors are once again interested in cryptocurrencies.
Many experts believe that the Shanghai upgrade is good for Ethereum in the long-term, as it allows more liquidity to ether investors and stakers. This could also be a catalyst for a change in institutional participation, which could lead to a further increase in the price of Ether. However, there was more uncertainty around how the upgrade would affect the price in the short-term.
According to industry experts, the sudden move higher in Ether may not be entirely Shanghai-driven. They suggest that it seems to be a bet on the overall liquidity outlook, but relief that the Shanghai upgrade did not produce a sharp drop is driving ETH’s outperformance.
Despite the initial excitement, some experts are still cautious. They warn that the crypto market is highly volatile and prices could fall just as quickly as they have risen. However, this upgrade has provided a positive outlook for the future of Ethereum and the cryptocurrency market as a whole. Investors are now hopeful that the next bull run is just around the corner.
The Shanghai upgrade has provided a much-needed boost to the Ethereum market, with the price of Ether rallying to its highest level in eight months. While there is still some uncertainty around the impact of the upgrade on the price of Ether in the short-term, many experts are optimistic about the long-term benefits. The upgrade has increased liquidity to ether investors and stakers, and could also attract more institutional participation. Overall, this could be a major catalyst for the next bull run in the cryptocurrency market.