Key facts:
- Coinbase analysts indicated that the impact on ETH of the staking withdrawal has been offset.
- ETH price is holding above $2,000 for the fifth day in a row after Shapella.
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The price of ether (ETH), the Ethereum cryptocurrency, has traded above $2,000 for the fifth day in a row following the successful activation of Shapella. And it could be that this upward trend continues until the end of April, according to David Duong and Brian Cubellis, market analysts at cryptocurrency exchange Coinbase.
Coinbase analysts communicated to the press 3 reasons why they project ETH to be strong in the remainder of April. First, they noted that “most addresses receiving partial staking withdrawals have not spent their received rewards.” In addition, they indicated that around 70% correctly established their retirement credentials after Shapella.
It should be noted that the sum of the Shanghai and Capella updates that allowed ETH withdrawals in staking for the first time is known as Shapella. This event was highly anticipated by the Ethereum market, as it was feared that stalkers would flock to sell off their unlocked holdings and create downward pressure. But so far, there has been no fall.ETH price is trading above $2,000 since Shapella’s successful activation. Source: TradingView.
Duong and Cubellis stressed, secondly, that full withdrawals are being processed, but their impact on the market has been partially offset by a “healthy number of new entrants to the validator input queue.”
Similarly, an analysis by market research firm Glassnode estimated that the staking withdrawals it calculated would fall within the average trade in the market. It is for this reason, among other reasons, that he does not expect great pressure to sell ETH after Shapella, as reported by Market Times.
Third, Coinbase analysts commented that ETH has not performed as well as Bitcoin (BTC) so far this year. That has left the room to attract investors to the Ethereum market with the Shapella upgrade, they estimated. Although it is essential to take into account that, being different assets, they may not have the same price behavior. According to TradingView, its appreciation in 2023 has been 74% and 78% respectively.
In turn, from Coinbase, the analysts added that, for the moment, the macro environment continues to be conducive to risk-taking. And they understand that such a scenario can support the price of ETH for the remainder of April.
