"Finally ETH is up too after being quiet for so long."
Second-largest cryptocurrency Ethereum (ETH) saw a significant 11.18% climb past the $2,120 mark following the arrival of Shapella, the latest step in the digital asset chain's transition from proof-of-work (PoW) to proof-of-stake (PoS). .
Shapella is an upgrade to both the ETH (Shanghai) and consensus (Capella) execution layers that allow the shareholders of the digital asset to withdraw their respective staking deposits.
But the question that is still lingering in the minds of investors is whether the increase in ETH is a positive sign to continue the bullish movement or vice versa.
Even so, the price of ETH was found to have risen sharply following the prospect of additional liquidity and gaining staking rewards, where around 18.3 million of the digital asset worth $36 billion had staking.
According to Diogo Monica, president and co-founder of institutional crypto platform Anchorage Digital said that investors will be more comfortable keeping their ETH and it will directly lead to a decrease in supply.
That streak, growing demand and upgrades to the ETH network will be the two main reasons why the price of the digital asset is unlikely to drop massively, Monica further commented.
It is well known that ETH's performance around that Shanghai upgrade will depend less on technicalities, but more on what the actual risks are at that time.
