Ethereum Hits $2,000 after Shanghai Capella or Shapella Update

Audy Castañeda
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<strong>Ethereum Hits $2,000 after Shanghai Capella or Shapella Update</strong>

The Shanghai Capella or Shapella update was a success. The most relevant Ethereum news after this event is evaluated below.

The price of Ethereum, the second largest cryptocurrency in market capitalization, skyrockets overnight after its latest Shapella update.

The successful implementation of the Shanghai upgrade finally allowed Ethereum investors to withdraw their holdings, after staking began in December 2020. This upgrade was the biggest on the network since last September’s Merger when Ethereum moved from a proof-of-work algorithm to a proof-of-stake algorithm.

As a proof-of-stake network, Ethereum uses validators instead of miners to secure the network. To become a validator, users must deposit 32 ETH (approximately $63,000 at the current price) into the network, and maintain a node at all times to earn rewards. If that node fails, a 32 ETH penalty can be applied to the validators.

The Bears Were Wiped out

According to Coinglass sell-off data, bear traders were wrong to bet against Ethereum, as it led the pack with over $44 million in trades settled in the last 24 hours, and 77% of those positions were short.

Although more than 137,774 ETH have already been withdrawn from the Ethereum Beacon Chain smart contract following the implementation of the Shapella update, there are still 852,000 ETH pending withdrawal, which is equivalent to more than $1,694 million.

In the next 12 hours, more than 80,000 ETH is expected to be withdrawn from Ethereum staking. What happens to validators in the coming days could have a significant impact, not only on the price of Ethereum but also on other aspects of the network, such as the issuance of ETH and the interest paid to stakers who validate new blocks.

Recently, it has been reported that Kraken, one of the largest exchanges in the world, is leading the list of withdrawal requests for Ethereum staking shortly before Shapella’s activation.

According to information provided by Rated Network, of the 997 complete withdrawal requests processed, 80% belong to the Kraken exchange. 19.6% belong to unknown validators and only 0.4% to Rocketpool.

Prior to the Shanghai update, validators were unable to withdraw their funds or collect any accumulated rewards. This led to widespread speculation that the possibility of withdrawing funds would cause bearish momentum in the network. However, many validators have exited, taking their staked Ethereum and rewards with them as they leave. In the last 24 hours, there has been a net outflow of more than 84,500 ETH, according to data mined from Nansen.

Ethereum at $2000, Where Are We Going?

As the media have mentioned in recent days, the price could reach $2,000 or correct to $1,700. Currently, the price of Ethereum is at $1,995, breaking the resistance of $1,940. The price could correct up to $2,050, to support the upward movement, which would be the target of the range formed before the liquidity zone breakout.

Some reports, such as one by analytics firm Glassnode, suggest that the activation of Shapella might not have a huge negative impact on the Ethereum price. This happens because many stakers are currently at a loss; therefore, they would have no incentive to sell their ETH. Closely monitoring how the Ethereum market will develop in the future, as well as how the activation of Shapella will affect it, thus, becomes paramount.

By Audy Castaneda

Etherum on the Rise and Staking ETH Withdrawals Now Available

Marina Meza
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<strong>Etherum on the Rise and Staking ETH Withdrawals Now Available</strong>

Ethereum’s long-waited Shanghai update was finally completed successfully this April 12, after being implemented on the Beacon Chain. The update includes, among other implementations, the long-expected ETH withdrawals on staking blocked within the network.

The second-largest cryptocurrency by market capitalization is up nearly 6% in the past 24 hours, with ETH trading at around $1,980, as stated by CoinGecko.

The price of ether (ETH), Ethereum’s cryptocurrency, embarked on an increase following last night’s Shapella activation. This was an event expected by the ecosystem that will allow funds blocked in staking to be withdrawn.

According to TradingView data, the activation of Shapella has pushed a price rise of Ethereum in the cryptocurrency market, as ETH reached its highest price in eight months.

For some experts and analysts such a rise was expected as it has almost touched the USD 2,000 level, at the same time they had warned that the Ethereum market could react upwards after Shapella.

In any case, other analysts estimate that some selling pressure could be generated after it drags ETH down, this is mainly due to stakers who decide to sell their holdings and investors who also do so for fear of a fall.

Though, various reports, such as one done by analyst firm Glassnode, have advised that Shapella may not generate a very pronounced negative effect on the ETH price. This idea is supported by the fact that most stakers are currently in losses, so it would not be in their best interest to sell. Therefore, given the various predictions, it is necessary to keep a close eye on how the Ethereum market continues to unfold.

Ethereum Shanghai Fork Complete: ETH Withdrawals Enabled

Ethereum’s Shanghai upgrade was implemented as planned in the 194048 era of the Beacon Chain. It is not only for being the first update on the Ethereum blockchain after The Merge or Merger, but it also marks the final transition to Proof of Stake (PoS) and the figure of staking.

Enabling ETH withdrawals for Ethereum validators and depositors was a priority for the developers, who made sure to design a testing and experimentation schedule over the past few months for the Shanghai hard fork, making sure to meet the planned timelines to ensure ETH withdrawals as soon as possible.

Glassnode, expects around 170k ETH to be sold after the Shanghai implementation, so they do not expect a big selling pressure and impact on the cryptocurrency right away with the upgrade.

Kraken, one of the exchanges with the highest trading volume on the planet, is leading the list of Ethereum staking withdrawal requests.

With Shapella activation, two withdrawal modes were enabled: partial and full. Partial withdrawals allow withdrawing only the earnings of the validator node, leaving it operational, while a full withdrawal empties the node’s funds, and “shuts it down”.

According to Rated Network data, beyond a total of 997 processed requests for complete withdrawals, 80% belong to Kraken exchange, the other 19.6% to unknown validators, and 0.4% to Rocketpool.

Kraken has more than 20 thousand validators, so the number of withdrawals would be around 5% as Beaconcha.in reported.

By Marina Meza

As Bitcoin Price Stabilizes, this Analyst Warns of Crypto Spring Hopes

Audy Castañeda
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<strong>As Bitcoin Price Stabilizes, this Analyst Warns of Crypto Spring Hopes</strong>

Bitcoin price has risen to the important resistance point of $30,000. It has jumped over 93% from the trough in 2022. Analysts note that crypto spring may be about to begin.

Bitcoin price is hovering around the $30,000 resistance level as investors assess the latest US inflation data as well as the positive FOMC minutes. BTC has soared more than 93% from its 2022 low, making it a better performer than gold, stocks, and other assets.

Fed Pivot Expectations

Bitcoin and other altcoins have done well on the hope that the Federal Reserve is nearing the peak of its bullish cycle, amid mounting recession risks. Data on Wednesday showed that headline inflation fell to 5.0% in March, the lowest point since 2021.

Other economic numbers have been relatively weak as of late. Last week, data from ISM and S&P Global showed that manufacturing and services PMIs fell in March. The manufacturing sector is faring even worse, as more companies move their production to the US.

Meanwhile, data released last Friday showed that wage growth continued to fall, despite the unemployment rate falling to 3.5%.

In view of the above, it is possible that the Fed is nearing the end of its hike cycle. In fact, the minutes published on Wednesday showed that some Fed officials supported pausing rate hikes, in order to observe the situation in the banking sector.

The members of the Federal Open Market Committee voted in favor of increasing the reference interest rate by a quarter of a percentage point. With this, the federal funds’ interest rate was between 4.75% and 5%, its highest level since the end of 2007.

“Several participants stressed the need to maintain flexibility and optionality in setting the right monetary policy stance given the highly uncertain economic outlook,” state the minutes.

Based on the abovementioned, with the Fed pricing in a recession and the yield curve inverted, there is a chance that a pivot is coming soon.

Spring Crypto Hopes

The Bitcoin price remained in a crypto winter during the Fed’s aggressive tightening phase. Now, there are hopes that a crypto spring will come as monetary conditions improve. In an interview on Tuesday, Mike Novogratz, CEO of Galaxy Investment Partners, a cryptocurrency investment firm, claimed that these actions by the Fed could push more people into cryptocurrencies. He expects the BTC price to retest its all-time high.

In a statement, Andrey Stoychev, Project Manager at Nexo, said that he thinks a crypto spring seems to be beginning. He cited the recent implosions of key banks like Credit Suisse and Silicon Valley Bank. Regarding the next prices to watch, he said the following:

“Now that we’re at the $30,000 price level, we’re close to the $32,000 threshold for the asset. Historically, we have seen resistance at $31,000 – $32,500. If BTC crosses $32.5K, we could potentially be on our way to $34-38K. While spring is an unpredictable season and it is still early to completely call off the ‘crypto winter’, these are favorable signs for the crypto space.”

By Audy Castaneda

Aptos Launches New Tokens, But Not Without a Fair Share of Bear Issues

Audy Castañeda
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<strong>Aptos Launches New Tokens, But Not Without a Fair Share of Bear Issues</strong>

Aptos saw considerable growth in its NFT space last month.

Aptos [APT] saw its last token unlock on April 12, in which the network released a fractional amount of tokens. The unlocked tokens represent 0.45% of its total supply and were worth more than $52 million. according to Token Unlocks, the next Aptos unlock is due in 29 days.

This is what followed…

Usually, the unlocking of a token is followed by a price drop, as the theory of supply and demand suggests. As newly unlocked tokens increase in circulating supply, the price of the asset could fall. This was true in APT’s case as well and the token’s daily chart was in the red.

According to CoinMarketCap, APT has dropped by more than 3.5% in the last 24 hours. It was valued at $11.35, with a market capitalization of more than $2 billion. At the time of writing, CoinMarketCap states that the live Aptos price is $11.78 USD, with a 24-hour trading volume of $198,247,535 USD.

Other Factors at Play

The latest drop may be a mixed result of the token unlock and the bearish market condition. LunarCrush’s data revealed that bullish sentiments around APTO decreased by more than 17% last week, which was also reflected on the APT weekly chart. Although it couldn’t be directly related to the price drop, quite a few metrics favored the negative.

Interestingly, according to Token Terminal, the number of active Aptos developers has also decreased in the last 30 days. The APT price drop came along with a massive increase in volume, which also seemed worrisome for the token.

Aptos NFTs Cause a Stir…

Despite the lack of interest shown toward APT, the network’s NFTs seem to be in a brighter spot. Aptos NFTs have caught the attention of many as the Blockchain hosted their NFT NYC Week. On April 11, Aptos tweeted the following:

“It’s NFT NYC Week in the Big Apple. Drop your favorite events, talks, and after-parties in the comments! Let’s start a thread of the best meet-ups this week. Don’t forget to RSVP for the official Aptos x NFT NYC ‘Free Renfield’ After Party with @NBCUniversal.”

In addition to the event, Aptos also launched Art of Aptos, a new series highlighting NFT projects across the ecosystem. This may further increase the popularity of Aptos NFTs in the coming weeks.

According to Santiment’s chart, Aptos experienced considerable growth in its NFT space last month. The total number of NFT trade counts and USD trade volume increased substantially, which seemed bullish for the future of Aptos NFT.

Bears to Dominate in the Short Term

Although the Aptos NFT space registered growth, the state of APT cannot be considered in its prime. Most of the market indicators aligned with the interests of the sellers, increasing the chances of a continued downtrend.

The ribbon exponential moving average (EMA) showed a bearish crossover. The money flow index (MFI) fell slightly, which was a negative sign. In addition, the Chaikin Money Flow (CMF) declined sharply, suggesting a price drop in the coming days.

By Audy Castaneda

Stablecoin Tether (USDT) and Lugano

Audy Castañeda
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<strong>Stablecoin Tether (USDT) and Lugano</strong>

With the growing popularity of the USDT stablecoin, Tether has partnered with the city of Lugano and several Swiss universities to launch the initiative Plan ₿, intended to promote Blockchain education and innovation.

A year has passed since the Swiss city of Lugano established Bitcoin and Tether (USDT) as de facto legal tender within its borders. This past Monday, Tether published a breakdown of various milestones the city has reached around crypto infrastructure and education under Plan ₿.

As part of this initiative, a summer school program was launched, attracting some of the most prominent leaders in the Blockchain and cryptocurrency industry as guest speakers.

This program was addressed to 86 students from 26 countries, who learned about cryptocurrencies from experts, in addition to providing 500 grants to further their learning. The summer school students were also given the opportunity to connect with potential employers at the Plan ₿ job fair, thus matching Blockchain industry employers with inactive talent.

Tether, its USDT Stable Coin, and the City of Lugano Join in for a Major Project

In recent years, the cryptocurrency industry has experienced rapid growth and adoption, with Bitcoin as the most widely known and widely used cryptocurrency. However, this growth comes with the need for education, as well as an understanding of the underlying technology that powers cryptocurrencies: The Blockchain.

Recognizing this need, Tether, the popular stablecoin issuer, partnered with the city of Lugano and several Swiss universities to launch Plan₿, already a year ago.

In addition to formal training programs, the initiative has also planned to offer a variety of resources and materials to help people learn about Blockchain technology. This will include ebooks, white papers, and other educational resources, which will be freely available to anyone interested in learning more about Blockchain.

Research is also a key component of the Plan ₿ initiative; The purpose is to provide funding and support for Blockchain research projects, with a particular focus on projects that have the potential to drive innovation and adoption of Blockchain technology.

The research is expected to be carried out in collaboration with several Swiss universities, with the idea of ​​drawing on the experience and knowledge of some of the world’s leading Blockchain researchers and academics.

On the other hand, the Plan ₿ initiative is also focused on development, providing support and resources to Blockchain startups and entrepreneurs, with the aim of promoting innovation and adoption of Blockchain technology.

The Summer School

The summer school program, already described above, is an exciting opportunity for people to gain a deeper understanding of Blockchain technology and become part of the growing community of Blockchain professionals and enthusiasts.

The Plan₿ Summer School has attracted some of the top leaders in the blockchain and cryptocurrency industry as guest lecturers.

Among the experts involved are: Pablo Ardoino, CTO of Tethe; Adam Back, CEO of Blockstream, a leading provider of Blockchain infrastructure and solutions, and Giacomo Zucco, CEO of Zuckbucks, a startup focused on Bitcoin education and adoption.

By promoting education, research, and development, the initiative has the potential to drive innovation and adoption of Blockchain technology, while also helping to create a better educated and informed public.

By Audy Castaneda

Ethereum, Expecting Shapella, Could It Have an Upside or Downside Reaction?

Marina Meza
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Ethereum, Expecting Shapella, Could It Have an Upside or Downside Reaction?

Tomorrow is decisive for the Ethereum price, Shapella update, and macroeconomic news could set the course.

Ethereum has had a lot to say since the beginning of the year. Ethereum’s price spiked alongside Bitcoin earlier this year, ETH in particular has managed a 63% gain so far this year. But the main and most discussed news is the new update of Shapella (Shanghai-Capella), scheduled for April 12th.

Shapella Upgrade Generates Uncertainty in Ethereum

The Ethereum update is scheduled for April 12th, Shanghai Capella or Shapella is a major update that comes after Ethereum changed from a proof-of-work mechanism to a proof-of-stake mechanism, known as “The Merge”. This update will allow validators to withdraw the stETH tokens they have staked on the Beacon Chain. In addition, major changes have been added to the runtime layer and consensus layer, as well as improvements to the API tools.

What is the Beacon Chain?

The Beacon Chain is an important part of Ethereum that introduced the proof-of-stake mechanism. This mechanism maintains network security and allows validators to earn more ETH by staking their tokens as collateral activating the validator software. Unlike mining, staking does not require large hardware and energy upfront costs, making it more affordable and less centralized.

Additionally, staking locks collateral assets, increasing the protocol’s ability to punish malicious actors after an attack. The transition to proof of stake has made Ethereum more secure and decentralized, and the more participants it has, the more resistant it is to attacks.

The big Event on April 12

The Shapella hard fork, also known as the Shanghai hard fork, is an event that will gradually release ETH staked on the Ethereum Beacon Chain. Currently, there are about 18.1 million ETH staked on the network, representing 15% of the total supply and worth about $33.7 billion, according to the Ultrasound.Money platform.

The Shapella update will allow news publication about the ETH withdrawal activation from staking both positive and negative, according to the Ethereum price so far and according to the price at which people have staked 32 ETH, the odds that they will sell or hold Ethereum is 50/50.

There is uncertainty regarding the Shapella update which has risen concerns about the possibility of a complete liquidation of the 18 million ETH placed in the Beacon Chain, as this will facilitate the progressive withdrawal of these funds in the coming weeks and months.

Ethereum Forming a Possible Double Top

It is important to note that Ethereum’s price is trading at $1914, after a bullish move yesterday, the price of ETH is struggling with a liquidity zone at $1940, a price level that has kept Ethereum on the sidelines since April 5th.

In the short term, it must be considered the possibility that the ETH price could hit a double top, as the price has touched the $1940 zone twice and the rejection was strong. If so, Ethereum’s price could return to the $1700 area, which has moved from resistance to support.

On the other hand, if the price creates a range and breaks it higher, Ethereum could be seen grabbing $2040, which would be the range target the price could form and the highest ETH price since August 2022.

Tomorrow’s volatility will be high so a suitable recommendation is to wait for strong patterns to create entry and exit positions, remember the prize has to come to you, don’t chase it. 

By Marina Meza

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