Ethereum Struggles at $1.9K Ahead of Shanghai Upgrade: Sell the News Sentiment Takes Hold
• Ethereum is struggling to maintain its momentum ahead of a major upgrade called Shapella.
• On-chain data suggests that the release of 170,000 ETH tokens may not have a significant impact on market prices.
• If bullish investors can break through the resistance at $1,940, Ethereum could hit fresh all-time highs.
Ethereum Struggles At $1.9K
Ethereum has been struggling to stay above the $1.9K mark in the run-up to its highly anticipated Shanghai upgrade, known as Shapella. Investors and traders seem to be demonstrating a classic “sell the news” behavior before the event unfolds.
On-Chain Data Suggests Modest Price Fluctuations
Concerns regarding potential risks with Ethereum’s unstaking activation are likely overblown, with on-chain data suggesting only modest price fluctuations upon release of 170,000 ETH tokens worth approximately $323 million. However, leading on-chain analytics firm Glassnode estimates that a much more plausible liquidity influx of 1.54 million ETH (valued at $2.93 billion) is highly improbable.
Bullish Investors Targeting Fresh All-Time Highs?
Buyers have effectively secured Ethereum’s 20-day EMA at $1,830 today which signifies a sustained positive trend for the cryptocurrency. Following Shapella’s implementation, bullish investors are expected to tackle resistance at around $1,940 if they want to set fresh all-time highs for Ether prices in 2021.
Shapella Upgrade Confirmed By Tim Beiko
Tim Beiko from the Ethereum Foundation has confirmed that Shapella will enable investors to access and redeem their offshoot Ether tokens after staking them in return for interest over three years when it goes live around 22:27:35 UTC today (12 April).
Ethereum’s upcoming upgrade is likely to bring some minor turbulence before things normalize once again in both price action and trading volume across exchanges worldwide as investors prepare for an exciting bull run throughout 2021 and beyond!