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.
Ethereum is currently selling at $1,296, after a 0.21% drop over the past 24 hours.
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.
Shanghai Upgrade: 1/5
The Ethereum development team has taken a quick step towards the Shanghai upgrade which is the next step in the Ethereum merge. To make sure everything runs at a fast speed, a testnet called Shandong has been created on the network. Several Ethereum Improvement Proposals (EIPs) will be added to this testnet before any final decision is taken for 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, data from Defilama claims that Ethereum holds 57% of the total value locked (TVL) among all other chains. Therefore, it is expected that the current TVL of Ethereum 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.
Therefore, Ethereum is surrounded by positive and bullish events. If ETH claims an upside move, immediate resistance lies at $1,300. However, if the bulls fail to propel the currency upwards, the currency could drop below its $1,250 support area.
