Ethereum price prediction as the Shanghai update draws near
Ethereum will go through its biggest update since the Merge.
The Shanghai update will take place on April 12.
It will likely attract the attention of the Securities and Exchange Commission (SEC)
Ethereum price moved sideways on Monday as investors focused on the upcoming Shanghai upgrade. ETH was trading at $1,800, where it has been in the past few days. This price was about 2.95% below the highest point this year. It has jumped by over 32% from the lowest level in March.
Shanghai update news
The main catalyst for Ethereum is the upcoming Shanghai update that is scheduled for later this month. For starters, this is a major milestone for the network since it will be the biggest update since Ethereum merged with the Beacon Chain in 2022.
The Merge helped to transition Ethereum from a proof-of-work (PoW) network into a proof-of-stake (PoS) platform. As a result, instead of mining, it now depends on validators to confirm transactions in the network.
This transition introduced the concept of staking, which allows people to lock their tokens to the network and earn returns. Unlike other staking projects, Ethereum holders cannot access their staked coins.
This update will make it possible for these users to withdraw their coins. Data compiled by StakingRewards shows tht the market cap of staked Ethereum stands at over $32 billion. This gives it a staking ratio of 15.6%. Therefore, this upgrade will likely boost the number of ETH coins in circulation.
Ethereum will likely be the target of the Securities and Exchange Commission (SEC), which wants to regulate staking blockchains and companies. Last month, the agency warned Coinbase against offering these products in the US. It also settled with Kraken about staking.
I suspect that the agency will increase its focus on staking if it prevails in its lawsuit against Ripple. Analysts believe that the judge overseeing the case will deliver the judgment in the second quarter of the year.
Ethereum price prediction
The 4H chart shows that ETH price has been in a tight range in the past few days. It has remained below the important resistance point at $1,845, where it has struggled to move in the past few weeks. It remains slightly above the 25-period and 50-period moving averages.
A closer look shows that Ethereum has formed what looks like a double-top pattern whose neckline is at $1,688. Therefore, there is a likelihood that the coin will have a bearish breakout in April after having a spectacular performance in March. If this happens, the next key support level to watch will be at $1,688.
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