ETH Breaks $1,900 Resistance Level Ahead of Shanghai and Capella Updates set on April 12th
Ether (ETH), the second-largest cryptocurrency by market capitalization, has been on an upward trend lately. The price of ETH has surged to a nine-month high ahead of the much anticipated Shapella upgrade on the Ethereum, which will enable users to withdraw their staked ETH on the Ethereum blockchain
Shapella is a combination of Shanghai and Capella, two major Ethereum network upgrades expected to occur on April 12, 2023. This update will enable validators and stakers to withdraw staked ETH from the beacon chain and implement other Ethereum Improvement Proposals (EIPs) to improve transaction speeds and reduce transaction costs.
Since withdrawing staked ETH was not an easy task to this day, this update is expected to make staking and capturing yields directly from the Ethereum blockchain more accessible to users, potentially leading to a bullish trend for Ether in the future. So far, investors have relied on liquid staking platforms such as Lido and Rocketpool to generate yields from staking ether on Ethereum.
The recent surge in Ether's price could also be due to traders expecting higher prices for these assets in the future upon the upgrade or the possibility that the Federal Reserve may ease up on its interest rates policy.
Ether has jumped 5%, surpassing the $1,900 resistance level and reaching over $1,920. This is the highest price level for the token since August 2022.
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While Bitcoin has also recorded gains in recent days, the ETH/BTC trading pair has increased by nearly 3% in the last week according to TradingView, suggesting that both factors may be contributing to Ether's price jump.
Looking back, it is worth noting that the price of ETH plummeted sharply following the execution of the Merge on September 15, 2022, causing it to lose just under a quarter of its value in one week. This is in contrast to earlier predictions that ETH would see a sharp increase.
