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Investing.com – The rose significantly on Thursday, surpassing the major psychological threshold of $2,000, and ETH is currently continuing its rise this Friday morning, with a recent high of $2,127, the highest since mid-month from May 2022.
At the time of writing, Ethereum is showing a gain of over 10% over 24 hours, and over 12% over a week.
Shapella update does not cause massive outflows on Ethereum
Recall that a major event took place on Wednesday evening on the Ethereum blockchain, with the implementation of the Shapella update (contraction of Shanghai and Capella), which introduced the possibility of withdrawing staked ETH.
It should be recalled that the previous Merge update of September 2022 had introduced ETH staking, replacing mining, marking the transition of ETH from a PoW network to a PoS network.
However, it was until Wednesday evening impossible to withdraw staked ETH or associated winnings. Thus, many analysts had feared that the implementation of the update would cause ETH to fall sharply, under the blow of the sales of staking investors recently “released” by Shapella.
However, this did not happen, with early data showing that staking participants mostly withdraw their winnings, but retain their staking principal. Moreover, the fact that it is now possible to withdraw staked ETH at any time should encourage many new investors to participate in staking, which is positive for ETH demand.
Technical thresholds to monitor on Ethereum
From a chart perspective, last night’s high near $2130 is the first potential hurdle on the way up. Then the $2200 threshold will be the next resistance to consider.
On the downside, the first support on is the key psychological level of $2000, ahead of the $1935 area.