With one week to go until the Ethereum (ETH) Shanghai and Capella upgrades on April 12, all eyes are on Ether. The second largest cryptocurrency by market capitalization shrugged off rumors and regulatory action against exchanges to hit a 7-month high of $1,922 on April 5.
Ether price has momentum and here are three strong reasons why.
Multiple positive price achievements
According to data from Cointelegraph Markets Pro and TradingView, despite market volatility, Ether price has posted gains on the 7-day, 1-month and 3-month timeframes. Ether price gains are also notable on the year-to-date perspective, showing 59% growth.
Ether vs USD price chart. Source: Cointelegraph Markets Pro
Ether’s ability to break resistance levels is leading some analysts to believe a $3,000 price target is on the horizon in Q2 2023. The trend shows that whale accumulation remains strong, growing by 0.5% in March according to data from analytics provider Santiment.
The bullish buying activity may prove on-chain data correct that Ether sell pressure after the Shanghai hardfork will be a non-event.
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The uptick in proof-of-stake validation by placing Ether in staking contracts is bullish for the Ethereum ecosystem. Since launching on Aug. 4, 2021, the Ethereum network has witnessed over 18 million in Ether staked on the blockchain.
Total Ether staked. Source: TradingView
The emergence of liquidity staking derivatives has reduced the barrier to entry to participate in Ether staking. The leader in LSDs and the largest single entity by value, Lido has close to one-third of all staked Ether. Including interest received, Lido contracts hold 5.9 million Ether from 137,000 unique depositors.
Lido Ether deposits overview. Source: Nansen
Ethereum network TVL surges
The total value locked in the Ethereum network is also rising, partially as a result of Lido’s protocol comprising 22.4% of the TVL on the Ethereum network. Despite TVL starting to drop on March 10 due to regulatory and macro headwinds, the DeFi market seems to be recovering.
Related: 3 key Ethereum price metrics cast doubt on the strength of ETH’s recent rally
On April 5, TVL reached $50.8 billion, nearly reaching the yearly high of $51.4 billion which was reached on Feb. 21.
TVL dashboard. Source: DefiLlama
The strength of Ether price ahead of the Shanghai and Capella upgrade is visible on-chain through increased usage, whale accumulation and a steady uptick in staking. With only 7 days remaining until the upgrade, traders expect continued volatility in Ether price.
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The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
