Bernstein Predicts Cautious Price Trend for ETH Ahead of Shanghai Upgrade

03/01/2023 12:28 • Blockchain Briefs • 89 views

It is reported that Bernstein said in a research report on Wednesday that due to the market’s fear of oversupply, the price trend of ETH is expected to remain cautious before upgrading in Shanghai later this month.

Report: Shanghai upgrade has limited impact on ETH supply

Analysis based on this information:

According to a research report by Bernstein, the price trend of ETH is likely to be cautious due to the market’s fear of oversupply. This comes as the cryptocurrency community anticipates a major upgrade to the Ethereum network scheduled for later this month in Shanghai.

Oversupply refers to an excess of Ethereum tokens in the market, where demand for ETH falls short of the supply. This can drive down its value, as buyers have the upper hand in negotiating prices with sellers. As such, the market tends to become more cautious about investing in ETH during periods of oversupply, as prices are perceived to be in a downtrend.

Bernstein’s analysis suggests that the market is currently dealing with this fear of oversupply, which is reflected in the price trend of ETH. It is likely that investors and traders will remain cautious in their approach to buying and selling ETH until the upgrade scheduled for later this month takes place.

The Ethereum network upgrade in question is called the London hard fork, which is expected to bring about several improvements to the network’s performance and security. One of the main changes is the implementation of the EIP-1559 proposal, which aims to improve the transaction fee system and reduce the volatility of gas prices.

Despite the potential benefits of the London hard fork, it appears that the market is cautious about its impact on the price of ETH. This may be due to the fact that previous network upgrades have not always resulted in a significant boost to the cryptocurrency’s value.

In summary, Bernstein’s analysis suggests that the price trend of ETH is likely to be cautious in the lead-up to the Ethereum network upgrade in Shanghai. The market’s fear of oversupply is contributing to this trend, as investors and traders become more cautious in their approach to buying and selling ETH. However, the potential benefits of the London hard fork may provide a much-needed boost to the cryptocurrency’s value in the long term.

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Bernstein Predicts Cautious Price Trend for ETH Ahead of Shanghai Upgrade

Report: Shanghai upgrade has limited impact on ETH supply

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