A lot of positive things happened in January 2023 on the Ethereum network, which created a critical mass of improvements for the jump in the price of this asset. Let’s look at what is happening with Ethereum and why we should expect its price to rise as early as February.
Technical analysis gurus are very excited to report that the $ETH chart is above its 200-day moving average (200MA) for the first time since 2021. This is a very important technical analysis indicator, which, for the last time in history, led Ethereum to a booming price.
But what are the objective events behind this ambitious prediction? Let’s try to list Ethereum’s recent successes to confirm the validity of this prediction.
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
There has been a notable increase in activity on Ethereum over the past month:
According to Beaconscan.com, as of January 16, 2022, there are about 501,215 validators registered on the Ethereum blockchain — on the same day last year, there were 282,249, which means a 77.58% increase over the calendar year.
But the main event is expected in February. If the recent Ethereum Merge aimed to change the Proof-of-Work consensus mechanism to Proof-of-Stake, the next Shanghai Upgrade should bring a number of critical changes to EVM functions.
This Ethereum Shanghai Upgrade is intended to make the network more scalable and provide better liquidity for Ethereum. This is another important milestone in the development of this network.
This is how the user @ETH_Daily summarizes this update:
The Shanghai hard fork is expected to bring significant improvements to the network, including increased scalability and security, as well as the introduction of a new consensus mechanism that will allow for more efficient and decentralized decision making.
What’s also important for the future of $ETH is that Bitwise Asset Management analysts previously said that Ethereum will become more deflationary in 2023 and that the number of coins frozen in stacking will rise after the February Shanghai update. This should have a positive effect on the price of the asset itself:
We anticipate that there will be significantly more demand to access and use Ethereum applications in 2023 vs. 2022, which will increase the amount of ETH burned via transactions. As a result, the total amount of ETH in circulation will decrease by 1% or more, with huge implications for investors.
U.S. Senators Elizabeth Warren and Bill Cassidy are taking action to combat the use of…
A unique turn of events unfolded for pre-order holders of Solana's 'Chapter 2' mobile phone,…
A recent advisory from the Federal Bureau of Investigation (FBI), advising against the use of…
In a move to tackle money laundering, the European Parliament has approved new regulations imposing…
Since its introduction following Bitcoin's halving event on April 20, Runes, a novel token standard…
Following the euphoria of Bitcoin's recent halving event, miners are now grappling with a stark…