Crypto market analysts predict that post-Shapella selling pressure will send Ether’s price plummeting during a day of disappointment.
The second largest cryptocurrency by market capitalization, Ether, started climbing steadily shortly before U.S. share markets opened, which is being obstructed only after ETH’s price had climbed past $2,000 for the first time since August of the previous year.
However, Ether was recently traded over $2,100, which is up more than 11% over the past 24 hours, as investors chose the prospect of additional liquidity while earning reinforcing rewards over the desire to take instant profits and run.
Ilya Volkov, CEO and co-founder of crypto trading service provider YouHodler, wrote to CoinDesk in an email that, “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 the ETH price up,” he added.
Volkov also noted that if current macroeconomic conditions don’t worsen, it is unlikely that ether will deviate from a price upswing that began with other major cryptos at the start of this year, even if selling pressure surges in the coming weeks. “Basically, ETH price stays in the same upward trend channel from the beginning of the year,” he wrote.
Shapella, also known as the Ethereum Shanghai upgrade, completes the Ethereum network’s move from a proof-of-work (PoW) system to a more energy-efficient proof-of-stake (PoS) protocol. Crypto market experts were divided on its impact, with some expecting a price spike and others expecting only a slight shift.
Bitcoin has recently maintained its more evenly paced momentum, moving towards $31,000, a gain of more than 2.5%. Furthermore, other prominent cryptocurrencies spent a significant amount of time in the green on Thursday, with ARB, the token of layer 2 blockchain Arbitrum, lately rising nearly 33%, and APT, the native crypto of layer 1 blockchain Aptos, rising about 12%. The CoinDesk Index, a gauge of the performance of the crypto markets, was also up about 5%.
Stocks, on the other hand, finished higher, with the tech-focused Nasdaq and S&P 500, both of which have a significant tech component, climbing 2% and 1.3%, respectively.
A number of cryptocurrency-related equities have extended their recent gains, with miners Marathon Digital and Hut 8 Mining both up by about 15%. Recession-averse investors maintained their hunger for other assets with significant value, propelling gold above $2,050, nearly it’s all-time high of $2,069, since 2020.
Will ether continue to rise? Glenn Williams, a CoinDesk analyst, suggested that ETH deposits might offer some signals about its future path signals about its future path. “Since January 2021, the ambit of ether deposited into ETH tie-up contracts has steadily increased, a direction that suggests the asset is gaining, not losing, favour,” 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 an uptick in asset value,” he added.
- Published By Team Genuine Reporter