As the Ethereum blockchain network has just successfully activated the Shapella update, the ETH price is now up sharply to more than 2000 dollars.
Indeed, Ethereum has gained more than 10% to $2100 after its update while some observers feared mass ETH withdrawals and a potential drop in the cryptocurrency’s price.
The upgrade, which now offers the ability to withdraw previously staked ethers.
If some analysts feared a fall of the Ethereum price once 18 million ETH tokens in staking could be withdrawn and sold, it is finally the opposite that happens today with an ETH price up by more than 10%!
The ETH price could continue to rise in order to catch up with the Bitcoin price, which has risen sharply in recent months and has now reached $31,000.
What we are seeing is a combination of a general rise due to liquidity and a lagging catch-up. ETH has notably underperformed BTC so far this year, with Shapella uncertainty keeping traders on the sidelines. Now that Shapella has gone smoothly and produced no sell-the-news events, traders have confidence to enter the market,” commented Noelle Acheson, analyst for Crypto Is Macro Now newsletter.
The rise in the Ethereum price is also highly anticipated by the crypto community who would love to see the other crypto currencies on the market also rise again.
So it remains to be seen whether the Ethereum price will continue its upward trajectory in the near future, alongside the BTC price.