- Ethereum bulls are on high alert as they desperately try to defend the critical support level of $1,680
- Whales have been accumulating the altcoin steadily, stacking up on the cryptocurrency consistently for the past week
- The altcoin has struggled to keep pace with Bitcoin’s performance in 2023
As the highly anticipated Ethereum (ETH) Shanghai upgrade looms, the fate of the altcoin hangs in the balance. Ethereum bulls are on high alert as they desperately try to defend the critical support level of $1,680 to prevent further decline in the price of the cryptocurrency.
Trading experts warn that if the altcoin drops below this crucial support level, it could spell disaster for ETH holders and bulls alike. The $1,680 level represents the top of a symmetrical triangle in place since September 2021, making it a crucial level for Ethereum to maintain.
In the run-up to the Shanghai upgrade, Ethereum whales – large wallet investors holding between 1,000 and 10,000 ETH – have been accumulating the altcoin steadily, stacking up on the cryptocurrency consistently for the past week. Meanwhile, retail investors have also been increasing their demand for ETH, with the number of addresses holding at least 0.01 ETH hitting an eight-month high, according to Glassnode.
The Shanghai upgrade is set to make Ethereum more accessible and scalable, with the ETH token unlock event slated shortly after. The Ethereum holder community has highly anticipated this event since the launch of the ETH2 deposit contract. Meanwhile, Total Value Locked (TVL) within the ETH2 deposit contract has hit above 17 million ETH, marking a new all-time high, fueling a bullish thesis for the altcoin.
Despite these positive developments, Ethereum has struggled to keep pace with Bitcoin’s performance in 2023. Analysts on crypto Twitter have noted that ETH has been less stable than BTC, even during the FTX collapse.
As the crypto ecosystem becomes increasingly uncertain, the narrative surrounding Ethereum’s future remains to be seen. However, one thing is sure – the fate of the altcoin hinges on the success of the Shanghai upgrade and the ability of Ethereum bulls to defend critical support levels.
Ethereum Shanghai in a Nutshell
The Ethereum Shanghai upgrade is a highly anticipated software update for the Ethereum network aimed at making the web more accessible and scalable. The upgrade includes several improvements, such as implementing the EIP-4895 transaction fee mechanism, which aims to reduce the volatility of gas fees on the network.
The upgrade is also expected to complete the cycle for the transition from proof-of-work to proof-of-stake consensus algorithm, which is a significant shift that will improve the network’s energy efficiency and reduce its environmental impact.
Overall, the Ethereum Shanghai upgrade is a significant milestone in developing the Ethereum network and is expected to bring about several improvements that will benefit users, developers, and the cryptocurrency ecosystem as a whole.
However, with recent events, including the US Securities and Exchange Commission declaring that Ethereum is a form of security unlike Bitcoin, the following days could delay further updates for the altcoin.
