Leading altcoin Ethereum is trading around $1,800, up over 22% on a weekly basis. Analyst Chris Burniske assesses the impact of the Ethereum Shanghai upgrade. Michael van de Poppe says that the ETH price may soon go up to these levels.
No Ethereum price drop after Shanghai activation!
Most Ethereum (ETH) enthusiasts fear the effects of Shanghai activation on their tokenomics. Significant amounts of ETH can be freed up in the markets, as this will enable withdrawal of Ether (ETH) from staking contracts (‘unstaking’). That’s why it’s not entirely true. In his latest tweet, analyst Chris Burniske highlights a non-obvious impact of the Ethereum Shanghai activation. The opportunity to ‘buy back’ Ether is a risk-reducing factor, according to the analyst. Therefore, ETH staking will become more risk-free since Q2 of 2023.
Shanghai de-risks Ethereum staking, expect the % of $ETH staked to 2-4x in the quarters following it. Those are bullish flows, not bearish. Expect volatility, but don't get faked out. pic.twitter.com/lsWTjW9MSx
— Chris Burniske (@cburniske) March 17, 2023
Therefore, more Ethereum enthusiasts with various deposits will likely join the staking ecosystem. In a few quarters, the share of ETH supply locked in staking contracts could add 100-300%. So Shanghai activation will result in volatility but not panic selling. Burniske also states that the Ethereum staking process is still in its infancy. In this context, the analyst makes the following statement:
Only 15% of Ether has been staked. To provide context, this indicator is around 70% for the ‘Ethereum killers’ Cardano (ADA) and Solana (SOL). Ethereum holders have avoided staking their deposits as this lockdown strategy is too risky for them as there is no withdrawal opportunity.
Bitcoin (BTC) entrepreneur Matt Odell has suggested that the entire current supply of ETH will switch to the orange cryptocurrency. However, Chris Burniske is not very happy with this scenario. Therefore, the analyst said, “The other 85% of unlocked ETH can escape from Ethereum to Bitcoin at will. Time to turn off the tired narrative, both BTC and ETH are quality assets,” he says.
ETH price may soon reach $2,000!
As you follow on Kriptokoin.com, the leading altcoin Ethereum has earned a place on CoinMarketCap’s trend list after its successful performance in the last few days. Currently, ETH is trading at $1,798 after a 2.79% price increase in the last 24 hours. ETH also hit $1,818.20 and a low of $1,707.95 in the same timeframe. In addition. ETH managed to gain about 0.46% against its biggest rival Bitcoin (BTC) compared to the last day.
ETH 1-day price chart / Source: TradingViewLooking at the longer timeframes, it’s clear that things are going well for the altcoin, as ETH has been in the green by more than 26% last week and more than 7% last month. The crypto’s 24-hour trading volume is also in the green zone and is currently at $12,432,080,508 after an increase of 20.95% since yesterday.
Prominent crypto analyst Michael van de Poppe shared his own views on what the ETH price could do in the coming days. According to the analyst, ETH’s resistance stands at $1,850. The analyst then states that ETH will likely retrace between $1,680 and $1,725. According to Van de Poppe, the price of ETH can go up to $ 2,000 from now on.
Ethereum 4-hour chart / Source: TradingView
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