• Ethereum (ETH) started the new year with a 90-day high of $1,674 on Jan. 21 and was trading at $1,572 as of Jan. 30th
• The Federal Reserve is expected to retain its stringent measures in order to keep the economy in check
• Ethereum will be ushering in a new era with the launch of the Shanghai upgrade (EIP-4895), transitioning from proof-of-work to proof-of-stake consensus mechanism
Ethereum Price Analysis
Ethereum (ETH) started 2021 off on a strong note, rising above $1,600 for the first time since February 2021. As of January 30th, ETH was trading at $1,572. The crypto community is now looking ahead to the Federal Reserve’s decision on interest rate hikes which could potentially impact digital assets such as Ethereum.
Factors Affecting Ethereum Price
Ethereum has become popular amongst developers, entrepreneurs and investors due its versatility and resilience. It boasts a wide range of capabilities from DeFi to gaming and data storage making it an attractive asset for many users. Factors that could directly influence Ethereum price include scalability issues and user adoption rates.
The Shanghai Upgrade
The impending launch of the Shanghai upgrade (EIP-4895) marks a new era in Ethereum development. After their September 2022 upgrade dubbed “The Merge”; ETH transitioned from proof-of-work consensus mechanism to proof-of stake validators requiring users to lock their funds indefinitely to become validators. However, this transition will change with the Shanghai upgrade allowing users to withdraw their funds after staking 32 ETH without having an indefinite lock up period.
Long Term Prediction
Analysts have predicted that long term gains could be seen for ethereum in 2023 given that current trends remain stable throughout 2022. If user adoption increases alongside successful upgrades then we may see further gains for ETH over the next few years however this all depends on how successfully these upgrades are implemented and accepted by users worldwide .
It is clear that ethereum has a bright future ahead if it can continue its current growth trajectory into 2023 and beyond. With successful implementation of upcoming upgrades such as The Merge and Shanghai we may see more stability for Ethereum allowing it potential gains as we move forward into 2023 and beyond.