The most notable change to the Ethereum (ETH) network was The Merge, which started in September 2022. The goal of this ETH hard fork was to implement the proof-of-stake (PoS) consensus mechanism. We are all eagerly awaiting the upcoming update, the Shanghai hard fork.
The update, which is expected to be released in 2023, is highly anticipated by traders. As part of the upgrade, Beacon Chain staking cryptocurrency units will become unlocked and tradeable. Ethereum merge should increase Ethereum’s market liquidity. But what market prospects exist ahead of the main update?
What Traders Are Saying?
Many well-known cryptocurrency specialists and traders shared their key theories and projections regarding the market impact of the Shanghai upgrade.
Cryptocurrency trader Thomas Kralow thinks that the influx of unstaked ether would cause the price of Ethereum to momentarily decline both before and after the upgrade because daily liquidity will not be enough to handle it. But at time of writing the Ethereum price has surge more then 10.69% in last 24 hrs and trading at $1,560.78.
Umee’s CEO and co-founder Brent Xu anticipated some selling pressure after the Shanghai upgrade.
Jeff Dorman, the chief investment officer of the digital asset management firm Arca, has stated, ETH is, in effect, a cryptocurrency index at this point.
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Bottomline
This merger may offer more confidence to the validators to stake more tokens on the protocol thus ETH price prediction could end the trade for 2023 with a potential high of $1866.79 as per coinpedia an expert crypto price prediction agency. Time will tell how the Shanghai hard fork affects Ethereum’s price. Although it is usually accepted that investors will sell their cryptocurrencies when tokens are produced, this may not actually happen.
Alternative coins often gain from network updates. The move to proof of stake by ETH demonstrated this.
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