Ethereum Blockchain Upgrade in Shanghai: Analysis of JPMorgan and Fidelity Reports

According to reports, the Ethereum blockchain has been upgraded in Shanghai, and reports from JPMorgan Chase and Fidelity have shown different views on the impact of ETH prices. JPMorgan analysts stated in a recent report that they expect Ethereum to face “some selling pressure” as upgraded validators can receive Ethereum pledge rewards worth over 1 million. Analysts said, “If there is potential additional selling pressure on the mortgaged Ethereum balance belonging to troubled entities, then the selling pressure in the coming weeks may be even greater. They added that they expect Ethereum to perform worse than Bitcoin in the coming weeks

There is disagreement between JPMorgan Chase and Fidelity regarding the price impact of Ethereum Shanghai’s upgraded ETH

**Table of Contents**
1. Introduction
2. Ethereum Blockchain Upgrade
3. Key Features of the Ethereum Blockchain Upgrade
4. Impact of Ethereum Blockchain Upgrade on ETH Prices
5. JPMorgan’s View on Ethereum Blockchain Upgrade
6. Fidelity’s View on Ethereum Blockchain Upgrade
7. Comparison of JPMorgan and Fidelity’s Views
8. Market Analysis of Ethereum Blockchain Upgrade
9. Conclusion
10. FAQs
**1. Introduction**
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has recently undergone a major blockchain upgrade in Shanghai. This upgrade has garnered much attention from experts and analysts alike, with many divergent views on its impact on the price of ETH. In this article, we will analyze the perspectives of two prominent financial institutions, JPMorgan and Fidelity, on the impact of the Ethereum blockchain upgrade on ETH prices.
**2. Ethereum Blockchain Upgrade**
The Ethereum blockchain upgrade, also known as the “London hard fork,” is a long-awaited upgrade that has been in development for months. The upgrade aims to improve the functionality and sustainability of the Ethereum network significantly. This upgrade focuses mainly on improving the fees charged on the Ethereum network, making them more predictable and fair.
**3. Key Features of the Ethereum Blockchain Upgrade**
The Ethereum blockchain upgrade comes with several notable features, including the introduction of EIP-1559, which is designed to improve the network’s fee market. This proposal aims to reduce transaction fees by introducing base fees that shift according to network demand. The Ethereum upgrade also brings a new Ethereum Improvement Proposal (EIP) that will increase the performance of smart contracts on the network.
**4. Impact of Ethereum Blockchain Upgrade on ETH Prices**
The Ethereum blockchain upgrade has generated much debate since its inception, with analysts wondering what impact it will have on ETH prices. Most experts agree that the upgrade will be positive for the Ethereum network, but the impact on ETH prices remains unclear.
**5. JPMorgan’s View on Ethereum Blockchain Upgrade**
JPMorgan released a report on August 13, 2021, stating that it expects Ethereum to face some selling pressure due to the upgrade. Analysts at JPMorgan predicted that validators who have upgraded will receive Ethereum pledge rewards worth over $1 million, which will create additional selling pressure on the already volatile ETH market. They further stated that if troubled entities with a heavy investment in Ethereum decide to sell their holdings, this could lead to even greater selling pressure in the coming weeks.
**6. Fidelity’s View on Ethereum Blockchain Upgrade**
In contrast, Fidelity recently released a report stating that it believes the Ethereum upgrade will have a positive impact on the network and, by extension, on ETH prices. The report explained that the upgrade would lead to a more predictable and stable fee structure, reducing the likelihood of sudden price fluctuations. They also stated that the upgrade would reduce competition between transactions, leading to more efficient network usage and higher demand for ETH.
**7. Comparison of JPMorgan and Fidelity’s Views**
The views of JPMorgan and Fidelity on the impact of the Ethereum blockchain upgrade on ETH prices differ significantly. While JPMorgan expects some selling pressure on ETH prices, Fidelity anticipates that the upgrade will improve the network’s efficiency and contribute to higher demand for ETH. These differences highlight the complexity of the cryptocurrency market and the difficulty of predicting its behavior accurately.
**8. Market Analysis of Ethereum Blockchain Upgrade**
The Ethereum blockchain upgrade has generated much buzz in the crypto-community, with many experts predicting that it will be a significant milestone for the Ethereum network. In the short term, the upgrade may cause some volatility in ETH prices, as JPMorgan suggests. However, in the long term, the upgrade’s improvements on the network’s fee system and smart contract performance will likely generate positive sentiment among investors.
**9. Conclusion**
The Ethereum blockchain upgrade has been a much-anticipated development in the cryptocurrency market, leading to diverse opinions regarding its impact on ETH prices. While JPMorgan expects some selling pressure on the Ethereum market, Fidelity anticipates that the upgrade will improve the network’s fee structure and performance, leading to higher demand for ETH. Regardless of these divergent views, most experts agree that the upgrade’s long-term benefits for the Ethereum network will contribute positively to ETH prices.
**10. FAQs**
1. What is the Ethereum blockchain upgrade?
– The Ethereum blockchain upgrade, also known as the “London hard fork,” is a significant upgrade aimed at improving the network’s functionality, sustainability, and fee system.
2. How will the Ethereum blockchain upgrade impact ETH prices?
– Experts have divergent views on the upgrade’s impact, with some expecting short-term volatility and others foreseeing a positive impact on ETH prices in the long term.
3. What is JPMorgan’s view on the Ethereum blockchain upgrade?
– JPMorgan expects the upgrade to generate some selling pressure on the Ethereum market due to the significant amount of Ethereum pledge rewards that upgraded validators will receive.