Analysts Commented: Rise or Fall with Shanghai Upgrade?

The largest altcoin, Ethereum, has experienced huge drops in 2022 and is a long way from its ATH in November 2021. In this context, although the price performance of ETH remains low, the historical upgrade of “Merge”, which foresees the transition to the PoS system in 2022, has been one of the biggest stories for ETH and crypto. Now, in Ethereum, eyes are turned to the Shanghai hard fork, which is scheduled for March 2023 after Merge, which will allow the participants in the network to unlock the ETH stakes that have been inaccessible for months.

As March approached, investors started betting on the Shanghai hard fork in ETH. Noting that the expectation of the Merge upgrade in Ethereum has turned into crazy speculation among traders, analysts are trying to prevent the same situation from happening in the Shanghai hard fork. Because before Merge, investors did not get what they expected when they were betting that ETH would rise. Ethereum failed to show the expected rise. In this context, some analysts shared their views as the uncertainty about Ethereum’s rise in March fluctuated in the market.

Coin Metrics “Merge was an important milestone and success for Ethereum. But in 2023, Ethereum ecosystem participants will also continue to grapple with the complex dynamics of proof-of-stake.” said. Jeff Dorman, chief investment officer at digital asset management firm Arca, said:

“Most investors have now heard of blockchain and want to somehow make money if the blockchain succeeds. For the past five years, almost every investor has tried to find different ways to express this theme. If you want to express all these areas of blockchain in one investment, it is Ethereum. In this regard, I am not worried about the potential selling pressure from unlocking staked ETH after the Shanghai upgrade.”

Crypto trader Thomas Kralow explains:

“I expect to see a short-term bearish move for ETH right before and after the upgrade as daily liquidity is not keeping up with the unused supply of ETH. Also, considering the fact that April is the tax deadline and there is usually a lot of selling during the tax period, I expect to see a lot of selling in ETH. I expect a drop. However, I think the potential price drop will not be more than 15-20% and ETH will recover quickly.”

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