In a significant development for the Ethereum community, Ether has surpassed the $1,900 level of resistance for the first time in over seven months, and is presently trading at $1,911.
This price increase occurs just before the Ethereum Shanghai hard fork scheduled for April 12th, which will permit stakers and validators to withdraw staked ETH from the Beacon Chain. This update is anticipated to make staking more flexible, increase transaction speeds, and reduce transaction fees.
The recent increase in the price of Ether may be attributable to the expectation that the Federal Reserve will alleviate its quantitative tightening efforts, as rate hikes create difficulties for the global banking sector.
In addition, there may be an increase in demand for Ether as a result of the forthcoming flexibility in staking, which is anticipated to be a major development for the Ethereum network.
While Bitcoin has also experienced recent gains, the ETH/BTC exchange rate has risen nearly 3% over the past week, suggesting that these two factors may be contributing to Ether’s current price increase.
Some analysts and traders have suggested that unlocking staked Ether may lead to a sell-off, but it is still unclear what will happen following the upcoming Shanghai and Capella upgrades.
As the community awaits the hard fork, there is an air of anticipation as to what this development will mean for the Ethereum network going forward. Nonetheless, it is essential to note that the price of ETH dropped significantly after the Merge was executed in September 2022.