with the Shanghai update, will ETH overtake Bitcoin?

Source: Trading View

The price of Ethereum has climbed 5.5% in the past 24 hours, in a day when the crypto market remains heavily shaken by CFTC accusations against Binance. The largest exchange in the crypto ecosystem in terms of trading volume would have facilitated derivatives transactions for its US customers without proper registration.

Over the monthly period, we observe that the price of ETH is up by 11% while the latter has recorded an increase of 52% since the beginning of 2023. In addition, the second most popular cryptocurrency is benefiting from the latest comments from Rostin Behman, commissioner of the US federal government’s Commodity Futures Trading Commission since 2017, who asserts that Ethereum should be considered a commodity.

At a time when exchanges and some token issuers are facing legal action, this statement from the CFTC official served to highlight the relative safety of investing in ETH, whose strong fundamentals have enabled him to achieve impressive results over the past few weeks.

Additionally, the Shanghai Update release date has been revealed. The latter will be available on April 12 and could have a positive influence on the price of the token, both in the short and medium term, thanks to institutional players who will potentially engage in ETH staking.

Ethereum Price Predictions: Will ETH Overtake Bitcoin?

Technical indicators for ETH currently suggest that the token is enjoying an upward rally that will most likely continue, even though the price has been steadily rising since the start of the year.

Source: Trading View

After opening March near 30, its relative strength index (purple) is poised to break above 60, indicating an uptick in buying momentum.

ETH’s 30-day moving average (red) is also not showing an immediate sign of slowing its rise against the 200-day average (blue), which is a positive sign for continued gains. in the coming days.

Based on its current momentum, ETH is likely to hit the $1,900 mark in the relatively near future, provided the market does not experience a significant shock.

This is, however, a perfectly conceivable eventuality at present, with Coinbase likely to be subject to legal action by the SEC, as the CFTC recently announced its decision to sue. Binance for a large number of alleged violations.

Nevertheless, the latest news about Ethereum suggests that the blockchain would be safe from possible legal action from US regulators for the time being. This in addition to displaying still solid fundamentals as well as constant monitoring of the roadmap.

The Shanghai update is already rolling out to the Goerli testnet, and its final launch is expected within a few weeks.

Shanghai will allow the withdrawal of ETH placed in staking (including staking rewards), which is likely to stimulate the uptrend of the Ethereum blockchain, as this update completes the Merge process started last September .

Some crypto analysts, however, point out that this event could cause a significant increase in selling pressure, but this is actually a rather improbable finding. Indeed, the developers have designed the Ethereum staking process to limit the number of withdrawals that can be made in a single day.

Currently, this limit is set at 1,575 full withdrawals per day, knowing that the total number of active validators is between 458,752 and 524,288. Additionally, a significant portion of validators are currently in a situation of losswhich means that many of them will choose to wait before exiting staking and selling their assets.

All of these factors make the Shanghai update a positive, and some experts even expect the number of staking tokens to increase, especially from institutional investors.

It is possible to cite the example of Nikolaos Panigirtzoglou, an analyst at JPMorgan, who published a note in February predicting that the ratio of ETH placed in staking could climb up to 60% once the update is finalized.

For this reason, ETH has a real chance to break above $2,000 in the next few months, and assuming a long-term bull market, Ethereum may even approach the $3,000 threshold. by the end of 2023.

Click here to buy ETH

Disclaimer: The “Industry Talk” section presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.

Source link -95