Mar 02, 2023
ETH Price Consolidates Ahead of Shanghai Upgrade
Ethereum’s native asset, Ether (ETH) has seen a period of uncertainty in the market since February 15th. The ETH token has been trading in a narrow sideways range between $1,600 and $1,700, as traders remain uncertain about the direction of the market for March. This uncertainty is due to the long-awaited Shanghai upgrade, which is expected to be implemented sometime in March.
The upgrade will enable stakers to withdraw their vested tokens from the Ethereum proof-of-stake (PoS) smart contract. Since its introduction in December 2020, the Ethereum PoS smart contract has attracted more than 17.4 million ETH (~$28.35 billion at the current exchange rate). However, the ETH token is finding it difficult to break above the technical resistance range in the $1,650–1,700 area.
Analysts are predicting that the upgrade could trigger a short-term sell-off event, resulting in a 25% ETH price correction. If history is any indication, this could take the price of ETH down to around $1,250.
Data trackers suggest that an extended Ether price crash is less likely, as there has been a massive drop in ETH supplies on exchanges since September 2022. This has seen the amount of ETH on exchanges fall from around 30% to 11%, reducing the immediate sell pressure.
Additionally, CryptoQuant has noted that 60% of the staked ETH supply is currently at a loss. The most profitable staked ETH was staked less than a year ago and has not seen significant profit-taking events in the past. This suggests that selling pressure will be limited.
As traders await the Shanghai upgrade, the Ethereum market remains uncertain. However, data trackers suggest that any potential sell-off events in the future will be limited. This could provide some relief for traders who are looking to invest in Ethereum.
For those looking to get involved in the Ethereum market, it is important to remember that any investment or trading move involves risk. Therefore, it is important to conduct your own research before making a decision. Additionally, there are many different ways to get involved in the Ethereum space, such as NFTs, crypto promotion, web3 marketing, and more. For those looking to engage with the web3 space, there are many agencies and services that can help, such as NFT marketing agencies, web3 agencies, and services that specialize in selling NFTs.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
