It has been a while since Ethereum, the second largest cryptocurrency by market cap, has been stuck in a pump and dump exchange. Although the coin had managed to recover $1,300, the bulls could not hold the range any longer, causing it to drop.

Ethereum is currently trading at $1,296 after a 0.21% drop in the last 24 hours.

Market participants eagerly awaited the merger update and expected impressive results for the price of the asset. However, although the event was successful, the price of ETH was not affected.

The Shanghai Update: 1/5

The Ethereum development team has taken a quick step towards the Shanghai upgrade, which is the next phase of the Ethereum merger. To ensure that everything moves at a fast pace, a testnet known as Shandong has been built into the network. This testnet will see an addition of many Ethereum Improvement Proposals (EIPs) before making a final decision towards the Shanghai upgrade.

The Shanghai is the first of a five-phase update that will see the introduction of sharding on the Ethereum network. Sharding improves the scalability of the network in terms of data storage and other mechanisms. The other four phases that will be seen after Shanghai are Verge, Purge and Splurge, which will take place over the next few years.

Meanwhile, data from DefiLlama claims that Ethereum holds a 57% share of Total Value Locked (TVL) among all other chains. Therefore, the current TVL of Ethereum, which is around $30 billion, is expected to increase.

On the other hand, the seven-day indicator shows that active addresses have exceeded two million.

Therefore, Ethereum is surrounded by positivity and bullish events. If ETH calls for a move higher, immediate resistance lies at $1,300. However, if the bulls fail to push the coin higher, the coin could drop below its $1,250 support area.

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