In the past 24 hours, Ethereum’s price has fallen by 1.5%, currently sitting at $1,663, as the market as a whole has fallen by 0.5%. Despite this dip, ETH has gained 8% over the last week and 10% over the past month, with a 39% increase since the beginning of 2023. Ethereum has maintained a solid $1,600 support level, which may serve as a basis for future gains, despite concerns about the global financial system.
The upcoming Shanghai update, which is set to launch in mid-April, will allow for staking withdrawals, reducing the risk associated with staking for both institutional and individual investors. This update will have a positive impact on Ethereum by decreasing the risk associated with staking, motivating users to stake their ETH and providing the technical foundation for upcoming Ethereum enhancements, such as sharding.
Despite concerns about the soundness of banks, Ethereum is well-positioned for future gains, especially over the upcoming month, assuming that the situation stabilizes. The deflationary tendencies of ETH since the Merge and EIP 1559 of last year mean that it frequently burns more ETH than it issues. However, the fact that Coinbase is still supporting Ethereum and that Visa is testing USDC stablecoin payments on the Ethereum network bodes well for the cryptocurrency’s future.
If the current banking crisis does not worsen, ETH’s price is likely to soar back up to $2,000 in the next months, potentially reaching new heights in 2024, boosted by increased bullishness resulting from the subsequent half of the price of Bitcoin. Despite the positive outlook, it’s important to keep in mind that the market is still vulnerable to shocks. If more shocks occur, crypto, including ETH, may suffer even more losses.