• Ethereum (ETH) has had a buoyant start to 2023, with the digital asset currently trading at $1,572.
• The launch of the Shanghai upgrade (EIP-4895) is ushering in a new era for Ethereum, transitioning from proof-of-work to proof-of-stake consensus mechanism.
• Analysts are monitoring the Federal Reserve’s decision on interest rate hikes and their possible impact on Ethereum’s price.
Ethereum Price Analysis
Ethereum price analysis indicates potential gains in 2023. After kicking off the new year at $1,192, ETH surged to a 90-day high of $1,674 on Jan. 21.
What Affects the Ethereum Price?
Various themes and questions will heavily influence Ethereum’s path such as scalability issues, user adoption and more.
The Shanghai Upgrade
The impending launch of the Shanghai upgrade (EIP-4895) is set to transition Ethereum from the traditional proof-of-work consensus mechanism to a proof-of-stake (PoS) one. This transition will allow users to stake 32 ETH to become validators.
Federal Reserve Impact
The crypto market will be monitoring any potential impact that this may have on digital assets such as Ethereum with regards to the Federal Reserve’s decision on interest rate hikes.
As various vital themes and questions continue to influence its path, how will ethereum settle throughout 2023?