Ethereum rallies toward $1,600, analysts predict 27 percent jump

Ethereum rallies toward $1,600, analysts predict 27 percent jump

Ethereum (ETH) is following the overall crypto market trend and has been moving higher, retracing 61 percent of the previous wave down on the H4 time frame chart.

ETH has broken through the $1,240 resistance level against the U.S. dollar. The increased whale activity in ETH caused its recent price hike.

ETH is showing signs of improvement, and it may break through the $1,300 resistance level. On Wednesday, January 4, over 600 ETH whale transactions were worth over $100,000.

What to expect from Shanghai upgrade

Compared to the other Layer 1 proof of stake networks in the market, Ethereum presently has the lowest rate of supply staked.

The ETH “Shanghai” upgrade will take place in March this year. According to a report shared via email with NewsBTC by Matrixport, a Singapore-based crypto financial services company, this will be a bull trigger for the digital asset.

Instead of falling, staked ETH volume is anticipated to increase. According to reports, better staked ETH means less supply in the market and scarcity results in higher prices.

Easy withdrawals will make investors more optimistic about staking their coins, realizing they can conveniently get them back.

Following the Shanghai upgrade, the report mentioned that ETH has already broken out of its sideways consolidation. Previous consolidations had seen ETH rally as much as 39 percent last year.

If another breakout like this arises, reports said that the digital asset could significantly rise by more than 27 percent — just like it did in October 2022 — bringing its price up to $1,600.

Forecasts also predict lower volatility this year, but investors should anticipate a 9.8 percent gain with a 63 percent implied volatility in March.

Several rallies could emerge in the months and weeks before the March upgrade, bringing ETH’s price to at least $1,500.

Vitalik Buterin, the co-founder of Ethereum, has expressed optimism about the platform’s development as it enters a significant global macro uncertainty.

Buterin did, however, point out a few things that the platform must improve. This involves creating more secure average user accounts, scaling, privacy and customer experience.