The Ethereum network successfully completed its Shanghai Upgrade (Shapella), marking the final transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Contrary to bearish expectations, ETH prices soared over 10%, breaching $2,100 for the first time since May 2022, fueling a broader cryptocurrency market rally.
Key Market Reactions
- ETH Price: +10.64% (24 hours), reaching $2,116.
- BTC Price: +2.34%, trading at $30,763.
- Short Liquidations: $85.71 million in ETH shorts liquidated—triple Bitcoin’s liquidation volume.
Why the Price Surge?
- Market Sentiment Shift: Traders anticipated post-upgrade sell pressure, but institutional and retail accumulation drove demand.
- Macroeconomic Factors: Neutral U.S. inflation data and sustained crypto interest bolstered confidence.
- Technical Milestone: Shanghai Upgrade’s completion reduced uncertainty, attracting long-term stakers.
ETH’s 2023 Performance
- Year-to-Date Gain: +60% (outpacing BTC’s +81%).
- Current Price vs. ATH: Still 56% below its November 2021 peak of $4,864.06.
👉 Explore real-time ETH price trends
Expert Insight
Ilya Volkov, CEO of YouHodler:
"Traders awaited upgrade clarity to open long positions. Barring macroeconomic downturns, ETH’s upward trajectory is likely to persist despite potential short-term sell pressure."
FAQ Section
Q1: What was the Shanghai Upgrade’s primary goal?
A1: To finalize Ethereum’s transition to PoS, enabling staking withdrawals and improving network scalability.
Q2: Why did ETH shorts get liquidated?
A2: Bears bet on post-upgrade price drops, but the rally triggered margin calls for leveraged short positions.
Q3: How does ETH’s current price compare to Bitcoin?
A3: ETH’s 10% surge dwarfed BTC’s 2.34% gain, highlighting stronger bullish momentum.
Q4: Will ETH’s rally continue?
A4: Analysts cite sustained demand and reduced selling pressure from validators as positive indicators.
👉 Learn how to stake ETH post-upgrade