Ethereum (ETH) price is up 6% over the past 24 hours, with the successful rollout of the Shanghai upgrade pushing the altcoin to $1,984.
This level represents an 18% gain for ETH over the past 30 days and a 65% gain since the beginning of the year, although some commentators suspect that the opening of withdrawals could result in increased selling pressure for altcoins.
That said, the daily limit on withdrawals will prevent any injection of additional ETH into the market from becoming too large and all at once, meaning the price drop could be minimal.
And with the successful introduction of withdrawals likely to make ETH staking more attractive to retail and institutional investors alike, the Shanghai halving could end up being very bullish for Ethereum.
Ethereum Price Prediction as Shanghai Upgrade Live – Will ETH Dump from Withdrawals?
ETH rising (instead of falling) in response to Shanghai is a very good sign, and the coin’s chart reflects such positivity.
Most notably, ETH’s Relative Strength Index (purple) has moved above 70 over the past few hours, indicating some very strong – and ongoing – momentum.
Meanwhile, its 30-day moving average continues to rise above its 200-day average (blue), indicating that ETH has a breakout rally at the moment.
A key resistance level in this context is undoubtedly $2,000, which could signal further consolidation gains if ETH manages to break it in a convincing manner.
Given that Ethereum’s Shanghai upgrade has successfully gone live, this is now a real possibility, with the successful completion of the update fueling bullishness among investors.
Despite rolling out this update with relative ease, some are suggesting that Shanghai could now trigger an ETH selloff, given that it effectively unlocks around 16.3 million ETH (worth about $30.5 billion).
In fact, about $1.6 billion in Ethereum is now pending for withdrawal, which is arguably a significant amount in light of Shanghai not even being live for 24 hours.
Still, it’s worth remembering that $1.6 billion is only 5% of the amount at stake, and only 1.3% of the total circulating Ethereum.
On top of this, ETH awaiting withdrawal will not be immediately loaded onto the market, with Ethereum’s developers setting limits on how many validators can process completed withdrawals per day.
this limit currently set to 1,575 full withdrawals per day, given that Total Active Validator Number – About. 512,000 — is between 458,752 and 524,288.
Thus, the volatile ETH will gradually come into the market without doing much to upset the price.
And so far, the fact that ETH price is up 6% today suggests that Shanghai is more of a net gain than a net loss for Ethereum.
In fact, the increase in ETH price could actually be so significant, with some analysts speculating that Shanghai could lead to a scenario where around 60% of Ethereum’s total supply at stake,
This will put millions of ETH out of circulation, drastically reducing its supply as well as boosting the demand for altcoins.
And even with last year’s EIP 1559 resulting in a fee burn, this supply shortfall could see ETH price rise significantly over the next few months.
Given that ETH is on the verge of passing $2,000, it could comfortably rise to $3,000 by the middle of the year, before climbing to $4,000 by early 2024.
And if next year brings a new bull market (likely for the next bitcoin halving), ETH will be highly acclaimed to break its current record high of $4,878.
ethereum options
Of course, such a bull market may not materialize for several months yet, while ETH’s gradual release to the east could serve to offset potential gains.
However, ETH is not the only coin in the market right now, with a variety of new altcoins also promising above-average gains in the near and more distant future.
cryptonews The Industry Talk team has studied such coins and put together a list of the top 15 cryptocurrencies for 2023, each with good short-term and long-term prospects.
This list is regularly updated with new altcoins and ICO projects.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.