Ethereum Price Prediction as Shanghai Upgrade Approaches – Will Ethereum Dump After the News?
Ether (ETH), the cryptocurrency that powers smart-contract-enabled Ethereum blockchain, hit its highest levels since last August on Tuesday close to $1,900, despite the network’s upcoming Shanghai upgrade that some have warned might trigger a price drop amid a “sell-the-news” event.
As a result, price predictions generally remain upbeat.
On the 12th of April, the Ethereum network will undergo a series of upgrades that will, first and foremost, enable the withdrawal of staked Ether tokens from the staking smart contract.
While analysts view the development as a long-term positive for the network – it is assumed that more flexible staking withdrawals will eventually attract many more ETH owners into staking their tokens – some have warned that there could be short-term price pressures, as investors sell ETH tokens that have been stuck in staking contracts for a long time.
ETH staking has been active since late-2020 on Ethereum’s beacon chain, prior to the Ethereum blockchain’s merge to proof-of-stake last September.
Others have warned that in wake of ETH’s stunning more than 55% gains since the turn of the year, a successful Shanghai upgrade might trigger profit-taking that could cause ETH price downside in the short term.
Despite these concerns about a potential dump, Ether’s technical outlook is looking good in the short term.
In recent weeks, the cryptocurrency has continually found good support at its 21-Day Moving Average.
All of its major moving averages are all pointing higher in consecutive order, another bullish sign.
A sustained push above the $1,850 area, which had previously been offering resistance, should open the door to a near-term test of the August 2022 highs above $2,000, assuming no post-Shanghai upgrade price
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