Ethereum (ETH) suddenly spiked from $1,870 to $1,925 early on April 5 and is currently trading at $1,910 on CoinMarketCap. The cryptocurrency has gained $90, or 5%, over the past 24 hours.
The impetus for ETH’s rally comes partly from the excitement surrounding the Shanghai upgrade that slated to happen on April 12. Since it is an important and anticipated upgrade, ETH price has thus seen a significant rally.
The Shanghai upgrade will enable the withdrawal of staked ether (stETH) that has been serving the Ethereum 2.0 upgrade since 2020. At the time of writing, the amount of ETH locked in the Ethereum staking contract has exceeded 17,9 million, worth around $34 billion. Therefore, ETH price will definitely have strong fluctuations in the next time if stakers decide to sell ETH after 3 years. This bullish scenario is similar to The Merge in Sep 2022. ETH at that time also rallied strongly and then dropped after the upgrade happened.
So, investors are advised to still be careful with unusual price movements at this sensitive time.