For the first time since August 17, 2022, Ethereum’s price has climbed back above $1900. This nearly eight-month peak occurs as shark addresses have been steadily rising since last summer.
According to Santiment, addresses with 100 to 10,000 ETH have amassed $4.24 billion over the last nine months, indicating a resurgence in investor interest against the backdrop of instability in the global banking industry.
One of the reasons experts believe has persuaded investors to boost their holdings is the widespread speculation the U.S. Federal Reserve has reached the end of its interest rate hike cycle.
Even though Fed Chairman Jerome Powell gave no guarantee of a pause at his most recent press conference in late March, the CME FedWatch Tool clearly showed 58% of traders are not anticipating a rate hike at the following Federal Open Market Committee meeting in May,
On the other hand, the price pump coincides with the Shanghai upgrade, which is scheduled for April 12 and will complete Ethereum’s switch to a proof-of-stake network.
Five Ethereum Improvement Proposals are included in the Shanghai mainnet upgrade, including EIP-4985, which would allow staked Ether withdrawals on the Beacon Chain and complete Ethereum’s switch from a proof-of-work [PoW] consensus to a proof-of-stake [PoS] consensus.
Most importantly, the Shanghai hard fork will enable validators to withdraw their staked ether as well as any incentives received from adding or approving blocks to the blockchain.
Ethereum Poised For A Breakout
The upgrade is expected to increase demand for staking ETH and create new liquidity options for ETH holders.
However, some investors are worried that the increased liquidity options will lead to more selling pressure and a decline in the price of ETH. There are currently 16 million ETH staked, which after the Shanghai upgrade goes live, can be withdrawn.
While it’s difficult to chalk out an accurate prediction, crypto analyst Ali recently made an interesting analysis.
According to Ali, Ethereum is on the verge of a breakout.
ETH reclaimed a crucial support level between $1,700 and $1,780, where 1.41 million addresses bought 6.48 million ETH. As long as this level holds, it’s reasonable to expect further upside, given the lack of resistance ahead.
At the time of publication, ETH had increased by over 6% over the previous 24 hours to trade at $1912.