Ethereum, alongside Bitcoin, is one of the most well-known digital currencies, even outside the cryptocurrency sector. Ethereum has gained great popularity over the last few years due to its broad palette of features and robust blockchain. However, Ethereum is more than a blockchain; it’s an innovative technology that offers excellent investment opportunities. Unlike other cryptocurrencies, it has a lower chance of disappearing overnight because it has grown into an ecosystem that supports countless projects (smart contracts, NFTs, metaverse, DeFi).
In this article, we will try to learn more about the second-largest digital currency. Exchange platforms like Binance provide information about Ethereum’s price evolution but please remember that Ethereum, alongside all other cryptocurrencies, is a volatile asset, so no one can tell for sure what it’ll happen with it.
Ethereum witnessed price spikes since the start of the year
The online news keeps talking about Bitcoin and its price surge, but Ethereum and Bitcoin’s prices are connected, so Ethereum’s value also increased over the last few months. In fact, Ethereum witnessed a sharp spike since the start of 2023, which attracted investors from several sectors. Over the last few weeks, it has hovered at around $2,000, and crypto experts predict its price could soar towards the end of the year.
The latest rally in ETH price is the direct consequence of the Shanghai and Capella upgrades, completed in April 2023, which enabled investors to withdraw their funds. The two events have caused crypto exchanges to register an inflow of ether.
The Shapella Upgrade caused Ethereum’s price to increase
As mentioned earlier, the Ethereum blockchain implemented the Shapella upgrade, improving the ecosystem’s security, efficiency, and performance. Since the Merge, the blockchain is in a journey of cutting down gas fees, and the latest upgrade could have an active role in achieving this goal for the layer-2 solutions homed on the top of the network. If Ethereum succeeds in its quest, it could become the most attractive blockchain because it’ll provide faster and more affordable transactions, and it’ll also boost the performance of Web3 applications.
Shapella also brought another change in the network because now it’s possible to stake ETH directly through the Ethereum network instead of relying on a liquid staking protocol. Investors could take advantage of this opportunity because they can gain passive income if they stake coins on the Ethereum mainnet. Another benefit for validators is that they can now withdraw their ETH funds via withdrawal facilities.
After Shanghai was implemented, stakers could withdraw their coins from the Beacon Chain. Ethereum also successfully completed the Capella upgrade, which changes the blockchain in several ways to better serve users.
What should investors do in the context of Ethereum’s price going up?
If you’re an investor, the latest Ethereum upgrades will most likely make buying ETH more appealing because you know you’d put your funds into an efficient and robust project. After successfully executing the Merge and Shapella, the ecosystem promises an unequaled level of stability, which will handle innovative services and products seamlessly.
During the first months of 2023, Ethereum has slowly but surely broken past the resistance level of 2022 and is now hovering towards stability. The latest upgrades have made it easier for Ethereum to maintain its price above the $1900 level, and any piece of positive news will cause a spike in its value.
Now is the ideal moment to add Ethereum to your portfolio, as its price is still lower than its all-time high but stable in comparison to last year. Crypto enthusiasts believe that holding onto this trend might prove fruitful in the long run because Ethereum has several utility cases and the greatest chances to survive and thrive, even during crypto winters.
Why do crypto experts think ETH prices will reach new highs in 2023?
The latest data reveals that Ethereum is still the number 2 digital currency in the entire cryptosystem, which is huge considering that so many other altcoins could snatch its place. For the last few weeks, it has been in a great upward trend, its value growing steadily. In fact, it has shown a strong potential for growth since its introduction on the market.
The technical analysis states that Ethereum’s price will increase in the following months. Here is why.
Institutional investors are interested in Ethereum
Ethereum has attracted the attention of crypto enthusiasts since the beginning because it was developed to offer solutions to Bitcoin’s drawbacks. But institutional investors preferred the first cryptocurrency for a long period due to its history and resilience on the market. But Ethereum proved that it could compete with Bitcoin in terms of resilience during challenging times and even surpass it in terms of utility cases. The social awareness arising around Ethereum has gained institutional investors’ attention, who are now adding ETH to their portfolios to maximize their profits.
Potential to surpass its past highs
As mentioned earlier, Ethereum is the second most popular digital currency by market cap, and its status could earn it a boost in value. History shows that over the years, its evolution was tied to Bitcoin, and considering that the oldest cryptocurrency is currently on an upward trend, Ethereum will also follow the same direction.
Ethereum is a popular cryptocurrency among beginner and seasoned investors alike. For an asset to grow, it must be well-known among the public. People should know its use cases, benefits, and main features. The more the public knows about Ethereum, the higher its value will grow. People prefer to invest in commodities they know of. Ethereum is one of the most popular digital assets, especially after it survived the bear market, pulling out the Merge and Shapella.
The most effective way to capitalize on Ethereum is to track its evolution over time and understand how the market impacts its value. Cryptocurrencies are volatile, but you can make a profit from their speculative character. The above data should help you decide if Ethereum is the right addition to your portfolio.