Upgraded Ethereum Blockchain in Shanghai: JPMorgan and Fidelity’s Take on ETH Prices

04/12/2023 22:59 • Daily Digest • 258 views

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

As the blockchain industry continues to grow, Ethereum has emerged as one of the leading cryptocurrencies in the market. According to recent reports, the Ethereum blockchain has undergone a significant upgrade in Shanghai, leading to varied views on the impact of the upgrade on ETH prices. In this article, we will explore the contrasting opinions of JPMorgan Chase and Fidelity on the current status of Ethereum prices.

The Ethereum Upgrade in Shanghai

As reported, the Ethereum network has undergone an essential upgrade to its protocol in Shanghai. The key aspect of this upgrade is the validation of specific transactions on the Ethereum network, which will now be carried out through a new mechanism known as Proof of Stake (PoS). This upgrade is a significant step towards the Ethereum network’s technological advancement, as PoS has been deemed to be more efficient, less energy-intensive, and faster compared to the previous mechanism known as Proof of Work (PoW).

JPMorgan’s Report on Ethereum Prices

On the basis of this upgrade, JPMorgan analysts have predicted a potential bearish trend for ETH prices. According to the report, this is because the upgraded validators can receive Ethereum pledge rewards worth over 1 million, which creates some selling pressure on Ethereum. As a result, troubled entities holding Ethereum could sell their holdings for profits, thereby leading to further selling pressure and driving ETH prices down. The analysts added that Ethereum might perform worse than Bitcoin in the coming weeks.

Fidelity’s Optimistic View on Ethereum Prices

In contrast, Fidelity has expressed a positive outlook on the current status of Ethereum prices. Although the market has experienced some volatility due to the upgrade, Fidelity believes that the upgrade is beneficial for the long-term growth of Ethereum. The upgrade to PoS will increase the speed of the Ethereum blockchain, minimize energy consumption, and reduce transaction fees, thereby improving the overall user experience.

Conclusion

While JPMorgan analysts have raised concerns about the short-term impact of the Ethereum upgrade on ETH prices, Fidelity remains optimistic about its long-term impact. It is important to keep in mind that the cryptocurrency market is highly volatile and that there may still be some degree of uncertainty concerning the direction of ETH prices. Investors and traders must do their research and make informed decisions on their investments.

Frequently Asked Questions

Q: What is the Ethereum blockchain upgrade in Shanghai?
A: The Ethereum blockchain has undergone a significant upgrade to its protocol in Shanghai that involves the validation of specific transactions through a new mechanism known as Proof of Stake (PoS).
Q: Why do JPMorgan analysts expect Ethereum prices to face some selling pressure?
A: JPMorgan analysts expect Ethereum prices to experience selling pressure after the upgrade as upgraded validators can receive Ethereum pledge rewards worth over 1 million. This creates some selling pressure on Ethereum.
Q: What is Fidelity’s stance on the Ethereum upgrade in Shanghai?
A: Fidelity believes that the upgrade is beneficial for the long-term growth of Ethereum. Although the market has experienced some volatility due to the upgrade, it is optimistic about the positive impact of PoS in the long run.

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