ETH Hits 7-months High Ahead of Shanghai and Capella Upgrades
ETH breaks the $1900 resistance level in advance to significant advancements. The price increase comes just a week before the upcoming major upgrade for the second-largest cryptocurrency by market capitalization. It will enable staking withdrawals. The last time Ether was above $1900 was August 16, 2022. And Now ETH hits 7-months high ahead of Shanghai and Capella upgrades. While a broader crypto sell-off when the US raised interest rates to combat inflation.
Implementation of Ethereum Shanghai Hard Fork
The Ethereum Shanghai Hard Fork is scheduled for April 12. It will implement Ethereum Improvement Proposal 4895, allowing validators to withdraw staked ETH from Bacon Chain.
EIPs aimed at improving performance and speed and reducing transaction costs. The recent price surge could drive by expectations that the Federal Reserve may ease up on its quantitative tightening efforts.
It is causing the global banking industry for Ether due to the increased flexibility in staking.
Understanding the Shanghai and Capella upgrades
The Shanghai upgrade refers to the fork on the execution layer client side. At the same time, Capella is the upgrade name on the consensus layer client side.
It’s set to execute shortly after Shanghai on April 12. Thus, ETH hits 7-months high ahead of Shanghai and Capella Upgrades.
All smart contracts and protocol rules reside in the execution layer. The consensus layer ensures that all network validators follow these rules.
Expectations after the upgrades
The price of ETH dropped sharply following the execution of the Merge on September 15, 2022. It lost almost 25% of its value in one week, despite some analysts and traders suggesting that unlocking staked Ether will create sell pressure. Whatever will occur following the Shanghai and Capella upgrades is still speculation.
To conclude, ETH hits 7-months high ahead of Shanghai and Capella Upgrades. . The price of Ether has surged past the $1900 resistance level for the first time. The enhancements expects to improve the transaction speed and reduce the transaction cost of Ether.
While the exact impact of the upgrades on the price of Ether remains to be seen, the current price surge could be due to the increased flexibility in staking and expectations like Federal Reserve may ease up on its quantitative tightening efforts.