ETH hits 7-month high ahead of Shanghai and Capella upgrades

April 04. 2023

By Luke Huigsloot

Ether has broken the $1,900 resistance level for the first time in months and is currently sitting above $1,911.

Ether (ETH $1,912) has breached $1,900 for the first time in over seven months, a week before staking withdrawals are enabled in the next major update for the second-largest cryptocurrency by market capitalization.

CoinMarketCap data shows the last time Ether was over $1,900 was on Aug. 16, 2022, amid a broader crypto sell-off at a time when the United States Federal Reserve was hiking the Federal Funds rate at a record pace to combat inflation.

The Ethereum Shanghai hard fork, set to occur on April 12, will implement EIP-4895 — allowing validators and stakers to withdraw staked ETH from the beacon chain — in addition to other EIPs which aim to help increase transaction speeds while reducing transaction costs.

The recent price increase could be driven by expectations that the Fed may ease up on its quantitative tightening efforts as rate increases cause cracks in the global banking industry, or by increased demand for Ether given that staking is slated to be more flexible.

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