It’s been a while that Ethereum, the second-largest cryptocurrency by market cap, has been stuck in a pump-and-dump trade. Though the currency had managed to reclaim $1,300, the bulls couldn’t hold on to the range for longer, which led to a crash.
Currently, Ethereum is selling at $1,296 after a fall of 0.21% over the last 24hrs.
Market participants had been eagerly awaiting the merger upgrade, and had expected impressive results for the asset’s price. However, though the event was successful, ETH’s price remained unimpacted.
The Shanghai Upgrade: 1/5
The Ethereum development team has made a quick move toward the Shanghai upgrade which is the next phase of the Ethereum merge. To ensure everything moves at a rapid pace, a testnet known as Shandong has been built on the network. This testnet will see an addition of many Ethereum Improvement Proposals (EIPs) before making any final decision towards the Shanghai upgrade.
The Shanghai is the first of a five-phase upgradation which will see an introduction of sharding into the Ethereum network. Sharding improves the network’s scalability in terms of data storage and other mechanisms. The other four phases that will be seen after Shanghai is Verge, Purge, and Splurge, which will take place over the next few years.
Meanwhile, the data from DefiLlama claims that Ethereum contains a 57% share of the Total Value Locked (TVL) among all other chains. Hence, it is expected that Ethereum’s current TVL which is around $30 billion is expected to increase.
On the other hand, the seven-day indicator displays that the active addresses have surpassed two million.
Hence, Ethereum is surrounded by positivity and bullish events. If ETH claims an upward movement, the immediate resistance lies at $1,300. However, if the bulls fail to push the currency upwards, the currency might fall below its support area of $1,250.