Almost 24 hours ago, the Ethereum (ETH) long-awaited Shanghai Upgrade took place successfully. Many have anticipated a dip alongside the upgrade. However, contrary to expectations, the price of Ether (ETH) has been on an upward trajectory since the upgrade took place.
Over the past 24 hours, following the Shanghai launch, Ethereum has recorded a bullish trend that is currently up by more than 6% with its market price now trading above the $2,000 mark. Its trading volume has also surged suggesting buying pressure.
Ethereum (ETH) Surges Over 6%
As of yesterday, prior to the Shanghai upgrade launch, ETH was in a downtrend trading below $1,900. This could be a result of some investors in the hours leading to the upgrade selling off their ETH holdings in anticipation of a price crash.
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However, after the upgrade was completed, the price of ETH started to rise steadily, and within 24 hours, it had breached the $2,000 mark. Looking at the chart, ETH just broke the marked resistance and is about to hit a major high around the $2,030 region.
Should ETH tap into the major high, the price of the asset could see a notable fall as a retracement. This could happen due to several traders’ take profit orders being triggered as the $2,000 mark is a notable region for the asset to trade above.
A trading price of $2,000 or above $2,000 would ETH be about 58% below its peak of $4,878 seen in November 2021. Meanwhile, Ethereum’s trading volume almost doubled last week’s daily volume. The asset currently has a 24-hour trading volume above $15 billion indicating strong buying pressure going on.
In contrast, the asset has also added more than $10 billion to its market cap, increasing from a cap low of $225 billion as of April 12 to $240 billion, at the time of writing.
Reason Behind ETH Unexpected Price Surge?
Though there is no accurate reason behind the unexpected surge of Ethereum following the Shanghai launch, this spike could be attributed to a number of factors.
As the global crypto market has been in an upward trend, the overall bullish sentiment in the market may have impacted the rising price of ETH. Bitcoin, the world’s largest cryptocurrency, has been on an upward trajectory in recent weeks, and this could be influencing the value of other cryptocurrencies, including ETH.
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In addition, increased investor confidence in the Ethereum network may have also contributed to ETH’s current surge following the Shanghai launch. Many investors believe this upgrade is an important milestone for the Ethereum network since the merge last September.
As a result, while many may have seen that it might cause a price dip, some investors may have also seen it as a great catalyst indicating a continuous development of the Ethereum network as well as long-term success and adoption of the platform and therefore, put more money into ETH.
Furthermore, as more users are able to participate in the staking process knowing fully well they can now earn rewards and be able to withdraw them, the demand for ETH might have increased contributing to the current surge.
Featured image from Shutterstock, Chart from TradingView