Crypto News

Ether Surges Above $2.1K After Ethereum Shanghai Upgrade Completion

Published by
Nonhlanhla P Dube
  • Ether’s price surged above $2,100 after the completion of Ethereum Shanghai upgrade, as investors preferred staking rewards over taking immediate profits and run.
  • The price surge is likely to continue, as long as current macroeconomic conditions remain stable, and ETH price stays in the same upward trend channel from the beginning of the year.
  • Other major cryptocurrencies, such as Bitcoin, ARB, and APT, also experienced moderate gains on Thursday, while gold rose above $2,050 as investors sought assets that hold their value.

Crypto market observers were anticipating a post-Shapella selling pressure that would send Ether’s price plunging. However, the second-largest cryptocurrency by market capitalization surprised many by edging up steadily shortly before U.S. equity markets opened. The price of Ether climbed past $2,000 for the first time since last August and continued to climb, recently trading over $2,100, up more than 11% over the past 24 hours.

Investors opted for the prospect of additional liquidity while earning staking rewards over the desire to take immediate profits and run. According to Ilya Volkov, CEO and co-founder of crypto trading service provider YouHodler, many traders had been waiting for the end of the upgrade to start long position accumulation. Therefore, neutral news about U.S. inflation plus deferred demand pushed ETH price up.

Table 1: ETH Deposits into Staking Contracts

MonthETH Deposited
Jan 20211.5M
Feb 20212.3M
Mar 20213.1M
Apr 20213.8M
May 20214.5M
ETH deposits into staking contracts have steadily increased since January 2021, indicating that the asset is gaining favor among investors.

Table 2: Cryptocurrency Performance

CryptocurrencyPrice (USD)24h % Change
BTC31,000+2.5%
ETH2,100+11%
ARB2.80+33%
APT0.45+12%
On Thursday, major cryptocurrencies such as BTC and ETH saw moderate gains, while tokens like ARB and APT experienced substantial increases.

Table 3: Gold Prices

DatePrice (USD)
Jan 1, 20231,980
Jan 15, 20232,020
Feb 1, 20232,040
Feb 15, 20232,070
Mar 1, 20232,060
Mar 15, 20232,080
Apr 1, 20232,090
Apr 15, 20232,050
Gold prices have remained steady and above $2,000 since the start of the year, with the precious metal reaching near its all-time high of $2,069 in 2020.

Volkov noted that if current macroeconomic conditions don’t worsen, it is unlikely that Ether will veer from a price upswing that began with other major cryptos at the start of the year, even if selling pressure increases in subsequent weeks. “Basically, ETH price stays in the same upward trend channel from the beginning of the year,” he wrote.

Shapella, also called the Ethereum Shanghai upgrade, is the final leg in the Ethereum network’s transition from a proof-of-work (PoW) to more energy-efficient proof-of-stake (PoS) protocol. Crypto market observers had been split on its impact, with some predicting a price swing while others anticipated little change.

Bitcoin also continued its more moderately paced momentum, recently edging toward $31,000, up more than 2.5% from Monday at the same time. Other major cryptos spent much of Thursday in the green with ARB, the token of layer 2 blockchain Arbitrum, recently soaring about 33% and APT, the native crypto of layer 1 blockchain Aptos, jumping about 12%. The CoinDesk Index, a measure of crypto markets performance, was recently up nearly 5%.

Stocks closed higher with the tech-focused Nasdaq and S&P 500, which has a large tech component, rising 2% and 1.3%, respectively. A number of crypto-related stocks continued their recent upswing with miners Marathon Digital and Hut 8 Mining each rising about 15%. Recession-fearful investors also continued to show their appetite for other assets that hold their value, sending gold above $2,050, near its all-time high of $2,069, set in 2020.

CoinDesk analyst Glenn Williams suggested that ETH deposits would offer some signals about its path forward. Since January 2021, the trajectory of ether deposited into ETH staking contracts has steadily risen, a direction that suggests the asset is gaining, not losing, favor,” Williams wrote. “Over the coming weeks and months, this metric will likely flatten as investors who must un-stake ETH begin the process of doing so. But for those who want to stake, Shapella’s completion signals reduced risk, increased liquidity, and brought an uptick in asset value.”

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube
Tags: Ethereum

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