There has been a continuous uptrend in cryptocurrencies for the past couple of months. While there has been an overall bullish sentiment in the market, investors seem to be divided when it comes to speculating on the price action in the upcoming days. While the start of April had seen good volume, it started decreasing gradually and has now put a lot of investors in a state of worry. However, top crypto exchange Coinbase has a comparatively bullish prediction for ETH, the Ethereum blockchain’s native token.
The frontrunner cryptocurrency Bitcoin has been making headlines for its surprisingly high volatility in recent days, as it rose to more than $30,000 from merely $19,900 back in March. But the past two days have seen a slump in this constant price increase, which has shifted the attention to the world’s largest altcoin in terms of market cap- ETH.
While the token is poised to grow considerably in the future as per popular websites, its short-term growth has been often related to BTC. However, despite the recent stagnancy in BTC’s price, there has been speculation of growth for the altcoin, at least till the end of April.
ETH Prices May Continue Rising Till Month End: Coinbase
According to a research report by Coinbase, the recent Shapella Upgrade in the Ethereum blockchain received an excellent response, which it considers to be the biggest reason for healthy growth in the short term. The exchange then provided three major factors as to why they expected the price of ETH to rise in the upcoming days.
The first among these was that rewards received by the people who had staked their ETH tokens weren’t sold or spent anywhere. Essentially, the majority of addresses receiving partial withdrawals have not spent their received rewards with around 70% of addresses having properly set their withdrawal credential prefixes to 0x01. Put more simply, some addresses were not able to set their withdrawal credentials until the upgrade went live, as this was necessary for both partial and full withdrawals to be enabled and for funds to be unlocked.
The note stated that the second reason was that despite full withdrawals being processed, their market impact had been partly offset by a healthy number of new entrants in the validator entry queue. This means that an increasing number of participants in the blockchain caused the price of ETH to stay at the upper levels despite some of the gradually increasing withdrawal requests.
The exchange stated that the third reason was Ether’s relative underperformance compared to Bitcoin year to date, which had left a lot of room for growth for the top altcoin. The recent upgrade only acted as a major catalyst, which caused the price of ETH to shoot up even further. Coinbase is a digital currency exchange platform that was established in 2012. It is one of the most user-friendly interfaces for buying, selling, and storing various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others. In the past couple of years, the exchange has become one of the most popular and trusted entities in the crypto industry.
Current ETH Price Action
The price of ETH has seen a decent increase in value since the start of 2023. Priced at about $1,119 in January, the token rose towards the $2000 range within a short span of 3 months, which was impressive considering the number of negative press that had been clouding the blockchain industry despite an overall bullish environment.
The token had slightly dipped in March along with the rest of the market when its prices plunged from $1,700 to less than $1,430 within a matter of days. However, ETH regained momentum right after and has since been on a continuous uptrend which has bought it to the current price level of $2,080.
While Coinbase did mention that the growth of ETH is expected till the end of April, it may still be a good idea to keep an eye out for any major economic developments that could affect the price of the token negatively. With a very shaky global economic condition, the best course of action for any investors would be to conduct thorough research and only invest amounts that they can afford to lose.
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