• About Us
  • Careers
  • Contact
No Result
View All Result
Saturday, July 5, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Markets

Ethereum Surges by 5% in a Week; Anticipation Builds for Shanghai Upgrade; Is $2000 in Sight for ETH?

23 February 2023
in Markets
Reading Time: 8 mins read
111 1
Ethereum Surges by 5% in a Week; Anticipation Builds for Shanghai Upgrade; Is $2000 in Sight for ETH

image source: cimg.co

Contents

Toggle
  • Decoding Ethereum’s Shanghai Upgrade: What Does It Really Mean?
  • Would Staking Withdrawals Boost the Price of Ethereum?
  • Would it be a good idea to purchase Ethereum at this moment?

Over the past several months, it has been observed that whales and other large investors have been withdrawing ETH from exchanges. According to data provided by Santiment, the value of ETH stored in exchanges has decreased by 37% since the Merge last September. During this time, the overall supply of ETH has also decreased by 30%.

Although the current value of ETH is undervalued, a substantial surge in price may not occur until after the Shanghai upgrade. The most likely Ethereum price prediction is an increase to $2,000. However, it is important to note that a collapse below $1,520 could undermine this positive perspective and result in a decline towards $1,200.

image source: coinmarketcap.com

ETH is among the best-positioned tokens to gain value as the cryptocurrency market improves this year. As 2023 progresses, the token’s price may rise significantly as it consolidates its position as the largest Layer 1 smart contract platform, owing to impressive network functionalities and arguably the best fundamentals in the market.

However, the $1,600 mark is an important support level to keep an eye on. A more significant selloff may be in store for ETH if it drops below this level, as evidenced by its recent decline to just under $1,500.

Despite potential price drops, ETH boasts some of the strongest fundamentals in the market. Its total value locked in (TVL), currently at $29.26 billion, represents 58.7% of the entire DeFi market. If Layer 2 networks based on Ethereum, such as Polygon, were also taken into account, this proportion would be even higher.

image source: defillama.com

With its early-mover advantage and significant network effects, Ethereum remains a popular platform for investors and users alike. The platform’s recent switch to Proof-of-Stake consensus has laid the foundation for improving its speed, scalability, and efficiency.

Following the Merge in September 2022, Ethereum’s popularity has only continued to grow. Just this month, payments giant, Visa, announced that it is testing USDC stablecoin payments on the Ethereum blockchain. This announcement, coupled with Visa’s previous support for Ethereum, suggests that major companies are betting on the network’s success, which is a positive sign for its future.

Visa has been testing how to do large settlements using $usdc on #ethereum. #crypto is going to be an everyday part of everyone’s lives soon. Get ready.

— Lark Davis (@TheCryptoLark) February 6, 2023

Ethereum is getting ready for the Shanghai (Shapella) update, which will enable users to withdraw staked ETH. Although some believe this will result in a flood of newly issued ETH entering the market, causing a price drop due to increased supply, it is more likely that this will have the opposite effect because this update will complete Ethereum’s transition to a Proof-of-Stake consensus mechanism. 

With the ability to withdraw staking rewards, the Ethereum ecosystem will probably experience an uptick in investment from retail and institutional investors. Additionally, the Shanghai update includes other modifications essential for Ethereum to adopt new technologies, such as sharding, which would allow the network to handle transactions concurrently.

Decoding Ethereum’s Shanghai Upgrade: What Does It Really Mean?

In recent years, users of the Ethereum network have faced sluggish transactions and exorbitant transaction fees. The situation escalated during the 2020 DeFi boom, which significantly increased the transaction value locked on the blockchain.   

This issue worsened in 2021 with the incredible NFT craze, as thousands of these non-fungible tokens were being minted and traded on the already slow and unscalable Layer 1 chain. Consequently, many projects began to migrate to other chains, which threatened Ethereum’s dominant market position. In response, Ethereum 2.0 was developed to improve the network’s speed, efficiency, and scalability. 

The Ethereum 2.0 release aims to improve the network’s speed, efficiency, and scalability. This new version of the Ethereum network is designed to enhance the network’s capability to handle significantly more transactions, improve smart contract stability, and reduce network fees. The Eth2.0 project was broken down into several upgrades, which would gradually implement new functionalities on the blockchain.

Ethereum 2.0 (Eth2.0) includes a series of upgrades aimed at enhancing the network’s capacity to handle a significantly higher volume of transactions, improving smart contract stability, and lowering network fees. 

The first step in the Eth2.0 evolution was the September 2022 Ethereum Merge, which marked the network’s transition from the resource-intensive Proof-of-Work (PoW) consensus mechanism to the more environmentally, socially, and governance-friendly Proof-of-Stake (PoS) consensus mechanism. 

Another upcoming upgrade, the Shanghai-Capella or Shapella, is scheduled for mid-March 2023. This upgrade will enable users to withdraw staked Ether (ETH) and implement EIP-4895, which hardcodes Ethereum with the new unstaking policy. 

Since its launch in December 2020, the Beacon Chain has yet to be merged with the old Proof-of-Work chain; however, validators have been able to stake ETH. Withdrawals have been conducted on the Zhejiang testnet as of February 7, 2023, and thus 16.5 million staked ETH will be available for withdrawal on the mainnet in March 2023.

An independent market analyst, Kennan Mell, believes that the improved liquidity may motivate additional individuals to hold and stake Ether tokens.

According to Mell in an article:

“It’s possible that the successful implementation of staking withdrawals will boost Ethereum’s price as new investors decide to buy in right afterward, either because they were waiting to buy until the network successfully went through a risky hard fork to implement withdrawals or because they are lured by a more liquid staking yield.”

Would Staking Withdrawals Boost the Price of Ethereum?

Although the implementation of the Shanghai upgrade is undoubtedly beneficial for Ethereum, it does not necessarily guarantee an increase in the cryptocurrency’s price.

It is essential to consider that withdrawing staked ETH would significantly increase the token supply, potentially flooding the market with 16.5 million ETH. However, the withdrawals would occur gradually, in different stages over time, which could prevent or mitigate a sharp price decline. The fundamental economic law of demand and supply would apply, but the gradual withdrawal would help to balance it out.

On the flip side, it’s indeed feasible that the integration of staking withdrawals may lead to an increase in the price of Ethereum if early investors decide to invest immediately, either as a result of waiting to invest after the network successfully undergoes a risky hard fork to implement staking withdrawals or because they are drawn in by a more liquid staking yield.

Additionally, the Shanghai upgrade advances Ethereum’s objective to become a more accessible and user-friendly network, which could have an upward impact on the cryptocurrency’s price. 

Once the recent slump passes, ETH’s price could rise above $1,700, and with Shanghai’s arrival and other adoption-related news, it may even surpass $1,800 and reach $2,000 by the end of the year.

Several other factors generally point to continued price increases through 2023, including the potential deflation of ETH during times of greater activity due to the Merge and other enhancements in EIP 1559.

#Ethereum becomes deflationary when the token’s burn rate (from transaction fees) is greater than the staking reward for validators

PoS ETH has only existed for a few months

In the next bull run, ETH may become even more deflationary with more people using Crypto regularly pic.twitter.com/Edpq0jrZR7

— Velvet.Capital (@Velvet_Capital) December 21, 2022

Would it be a good idea to purchase Ethereum at this moment?

The past few months have seen an increase in the removal of ETH from exchanges by whales and other larger investors. The value of ETH stored by exchanges has reportedly decreased by 37% since the Merge in September, while the overall supply of ETH has decreased by 30% during that time, according to data provided by Santiment. 

Even though ETH is now undervalued, a significant surge may not occur until at least the Shanghai upgrade. To sum up, an increase to $2,000 is the most feasible Ethereum price prediction. This positive perspective would be undermined by a collapse below $1,520, which might lead to a decline toward $1,200.

Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.

 

If you would like to read more market analysis like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share65Tweet41Share11
Favour Udeo

Favour Udeo

Favour is a writer, who is interested in blockchain, DeFi, and Web3 in general. She finds machine learning and emerging technologies interesting.

Related Posts

BRICS Digital Currencies & Their Threat to USD-Denominated Stablecoins
CBDC

BRICS Digital Currencies & Their Threat to USD-Denominated Stablecoins

5 July 2025
The U.S. Crypto Regulatory Pivot: How the FIT21 Bill & ETF Greenlights Are Reshaping Global Policy
Markets

The U.S. Crypto Regulatory Pivot: How the FIT21 Bill & ETF Greenlights Are Reshaping Global Policy

5 July 2025
VC Funding in Web3: Where the Money Is Going Post-2024 Bear Cycle
Business

VC Funding in Web3: Where the Money Is Going Post-2024 Bear Cycle

5 July 2025
Could Solana Surpass Ethereum?: Scaramucci Makes Bold Prediction
Markets

Could Solana Surpass Ethereum?: Scaramucci Makes Bold Prediction

4 July 2025

Featured Posts

Has Web3 Failed to Protect the Core Innovations of Crypto and DeFi?

Has Web3 Failed to Protect the Core Innovations of Crypto and DeFi?

byOlajumoke Oyaleke
15 June 2025
0

Are Green Cryptocurrencies the Future of Blockchain Sustainability?

Are Green Cryptocurrencies the Future of Blockchain Sustainability?

byOlayinka Sodiq
12 June 2025
0

Web3 Gaming’s Scaling Crisis: Why Innovation Alone Isn’t Enough

Web3 Gaming’s Scaling Crisis: Why Innovation Alone Isn’t Enough

byOlayinka Sodiq
10 June 2025
0

What Is Price Slippage in Crypto & How Can You Avoid It

What Is Price Slippage in Crypto & How Can You Avoid It

byOlayinka Sodiq
4 June 2025
0

The Rise of Decentralized Identity Solutions in DeFi

The Rise of Decentralized Identity Solutions in DeFi

byOlayinka Sodiq
20 October 2024
0

Read More

Chain of Thoughts

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Markets Update

BRICS Digital Currencies & Their Threat to USD-Denominated Stablecoins

9 hours ago

The U.S. Crypto Regulatory Pivot: How the FIT21 Bill & ETF Greenlights Are Reshaping Global Policy

11 hours ago

VC Funding in Web3: Where the Money Is Going Post-2024 Bear Cycle

14 hours ago

Could Solana Surpass Ethereum?: Scaramucci Makes Bold Prediction

1 day ago

Your Weekend Crypto Roundup | July 2025 (Week 1)

1 day ago

How Pi Network’s Ecosystem Growth and Pi2Day Updates Could Spark a Price Surge in 2025

1 week ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    The Open Platform is first unicorn in Web3 ecosystem in Telegram at $1bn valuation

    bychainwire
    3 July 2025
    0

    Cooking.City Bringing Back Value Redistribution to Solana Fair Launches

    bychainwire
    3 July 2025
    0

    Oasis Protocol Foundation Launches ROFL Mainnet: Verifiable OffChain Compute Framework Powering AI Applications

    bychainwire
    2 July 2025
    0

    WEMADE & Redlab Unleash Web3 MMORPG – Global Pre-Registration Open for Aug 2025

    byPressRelease
    2 July 2025
    0

    PrimeXBT Launches ‘Trade as VIP’ Campaign Offering 70% Off Trading Fees

    bychainwire
    2 July 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Markets
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverses
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00