After the successful implementation of the Shanghai upgrade, Ethereum (ETH) has taken a strong step. ETH price has surged above $2,100 and gained more than 10% in the past 24 hours. Ethereum is strong competition for Bitcoin (BTC), which has captured all the attention so far in 2023.
By gaining more than 14% on the weekly chart, Ethereum has surpassed Bitcoin, which is up 10% over the same period. It is clear that ETH is trying to close the gap with BTC, which is already up more than 80% since the beginning of the year. On the other hand, ETH has gained almost 77% since the beginning of the year.
The implementation of the Shapella (Shanghai + Capella) upgrade has enabled ETH investors to withdraw their staked coins. Many have argued that this could lead to selling pressure on ETH, but the matter has completely reversed in the 36 hours since the launch of the Shanghai hardfork.
Crypto fund manager Digital Asset Capital Management wrote: The impact of allowing the withdrawal of staking rewards and seed capital “remains to be seen,” adding that “both data withdrawal and sale are closely chained. will be monitored to see if there is any selling pressure as a result.”
Institutional demand for Ethereum
As the Ethereum blockchain continues to progress, demand for its native ETH cryptocurrency continues to grow. Speaking to Bloomberg, Annabelle Huang, managing partner at cryptocurrency lender Amber Group, said:
“We are already seeing more institutional demand when it comes to Ethereum now that they can immediately deploy, undeploy more liquidity.”
Crypto analysts currently remain divided on whether Etheruem (ETH) can continue its current price rally in the market. On the other hand, the macro factors will continue to impact the crypto space. “Personally, I don’t think we’re out of the woods yet,” said Amber’s Huang.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Ethereum closes gap with Bitcoin, will it catch up in 2023?
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