Will Shanghai upgrade & Shanghai Pudong Development lift the Ethereum?

Will Shanghai upgrade & Shanghai Pudong Development lift the Ethereum?
Ahura Chalki
Ahura Chalki
Published on: 27.03.2023 15:22 (UTC)
Post reading time: 1.56 min

With more than 46% gain in 2023, ETH proved itself one of the most trusted coins with a brighter future. Several factors can get attention to ETH, including the Shanghai upgrade and Hong Kong trying to become a crypto hub.

Shanghai upgrade, supposed to happen sometime in April 2023, will be the first significant change on the Ethereum network since the Merg. The Ethereum merge changed the ETH protocol transition from a Proof-of-Work (PoW) consensus algorithm to a Proof-of-Stake (PoS) algorithm. Moreover, the Shanghai upgrade will allow users to un-stake their staked ETH, allowing users to withdraw ETH tokens locked up for validation purposes on the Ethereum network. 

While the Shanghai upgrade can boost the transaction speeds for Ethereum network users and offer lower gas fees, it also will introduce flexibility in the staking process to give users more control over tokens. 

On the other hand, several reports show more interest from Chinese Banks in the crypto world. Different reports show that Chinese banks, including Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd., have started offering banking services to crypto firms in Hong Kong to at least make inquiries with crypto firms. Julia Pang, head of banking relations at Hong Kong-based crypto trading platform OSL, told Cointelegraph that her firm welcomed “growing interest from Chinese banks in engaging with the regulated crypto industry. This development is encouraging for both the industry and the broader ecosystem, as it demonstrates a maturing understanding of the crypto sector by traditional financial institutions.”

From a technical point of view, the ETHUSD just moved above the key level of $1,700. While the EMA crossing strategy remains bullish, RSI at 57 also confirms the strength of raising prices. If ETH can hold the $1,700 support, the next target will be $2,050. Conversely, falling under $1,600 can change the scenario to a bearish outlook, with the next target around $1,300.