Undoubtedly, the Shanghai upgrade will significantly impact ETH's price and volatility
Aa
Share
The Ethereum Shaghai udpate is getting closer and closer. Judging from the past – could the Ethereum Shanghai update can affect the token's price?
Serhii Zhdanov (EXMO CEO): The upcoming Shanghai upgrade is an important event for the market. It is second only to the Merge in terms of significance to the crypto industry. The update allows users to withdraw staked ETH and includes several improvements to the system.
Typically, upgrades like Shanghai add new features and functionality to the Ethereum network
Undoubtedly, the Shanghai upgrade will significantly impact ETH's price and volatility. However, it is difficult to predict the market reaction. The Merge is a great example of this. The reaction of market participants to the upgrade was quite positive. Investors and speculators appreciated it. ETH’s price went up rapidly but was followed by profit-taking.
However, it's worth noting that at that time, the market situation was completely different with general oversold conditions and a storm of negative news. At that moment, any good news could significantly move ETH's price up. And the fact that the upgrade went live successfully added positive energy to the dull market.
Read next: The AUD/USD Pair Remains Under Selling Pressure, The GBP/USD Pair Is Below 1.21 Again| FXMAG.COM
Currently, market conditions are different. The market has risen, there is good news and many believe that the bull market has already begun. Typically, upgrades like Shanghai add new features and functionality to the Ethereum network. This certainly attracts the attention of both long-term and short-term traders, and they can push the price of ETH to new local highs.
The opposite effect is also possible. If the upgrade is unsuccessful or there are any issues during the launch, the effect on ETH's price can be negative. Therefore, it is worth correctly assessing the risks, especially for short-term traders.
As for ETH's price, you need to keep an eye on the $1,700 level, which is a strong resistance level. If this level is broken through, there is a possibility that ETH can go above $2,000.
