With a week to go until the Ethereum (ETH), Shanghai and Capella updates on April 12, all eyes are on Ether. The second-largest cryptocurrency by market cap deflected rumors and anti-exchange regulatory action to hit a 7-month high of $1,922 on April 5.
The Ether price has momentum and here are three compelling reasons for it.
Multiple positive price achievements
According to data from Cointelegraph Markets Pro and TradingView, despite the market volatility, the Ether price has posted gains on the 7-day, 1-month, and 3-month timeframes. Ether price gains are also notable on a year-to-date perspective, showing 59% growth.
Ether’s ability to break through resistance levels is leading some analysts to believe that a $3,000 price target is on the horizon in Q2 2023. The trend shows whale accumulation remains strong, growing a 0.5% in March according to data from the analytics provider; Santiment.
The bullish buying activity may prove that the on-chain data is correct and that the selling pressure on Ether after the Shanghai hardfork will be a minor event.
The increase in proof-of-stake validation by placing Ether in staking contracts is bullish for the Ethereum ecosystem. Since its launch on August 4, 2021, the Ethereum network has seen more than 18 million Ether locked on the blockchain.
The emergence of liquid staking derivatives has lowered the barrier to entry for participating in the Ether consensus mechanism. A leader in staking derivatives and the largest single entity by total value locked, Lido owns close to a third of all Ether tokens locked. Including interest received, the Lido contracts hold 5.9 million Ether from 137,000 unique depositors.
Increases the TVL of the Ethereum network
The total value locked on the Ethereum network is also increasing, partly as a result of the Lido protocol comprising 22.4% of the TVL on the Ethereum network. Despite the fact that the TVL started to fall on March 10 due to regulatory and macroeconomic headwinds, the DeFi market appears to be on the mend.
On April 5, the TVL reached $50.8 billion, almost reaching the yearly high of $51.4 billion, which was reached on February 21.
Ether price strength prior to the upgrade, Shanghai, and Capella, is visible on-chain through increased usage, whale accumulation, and a steady increase in staking. With just 7 days to go until the update, traders expect continued volatility in the Ether price.
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