Ethereum Closes Gap With Bitcoin, Will It Overtake in 2023?

Post the successful implementation of the Shanghai upgrade, Ethereum (ETH) has delivered a strong move. The ETH price has surged past $2,100 levels gaining more than 10% over the last 24 hours. Ethereum has been posing strong competition to Bitcoin (BTC) which has grabbed all the limelight so far in 2023.

By gaining more than 14% on the weekly chart, Ethereum has outstripped Bitcoin which has gained 10% during the same period. It is clear that ETH is trying to close the gap with BTC which is already up by more than 80% since the start of the year. On the other hand, ETH has gained close to 77% now since the beginning of the year.

The implementation of the Shapella (Shanghai + Capella) upgrade has allowed ETH investors to withdraw their staked coins. Many have argued that it could lead to selling pressure on ETH, however, the case has been completely opposite in the 36 hours since the launch of the Shanghai hardfork.

Crypto fund manager Digital Asset Capital Management wrote: The impact of allowing the withdrawal of staking rewards and initial capital “is yet to be seen”, adding it “will be watching both withdrawal and selling data closely on-chain to see if there is resulting sell-pressure.”

Institutional Demand for Ethereum

As the Ethereum blockchain continues to make progress, the demand for its native ETH cryptocurrency continues to grow. Speaking to Bloomberg, Annabelle Huang, managing partner at crypto lender Amber Group, said:

“We’re already seeing more institutional demand when it comes to Ethereum now that they can stake, unstake, more instant liquidity”.

Crypto analysts currently remain divided over whether Etheruem (ETH) can continue its current price rally in the market. On the other hand, the macro factors will continue to have an influence on the crypto space.“Personally, I don’t think we are out of the woods yet,” Amber’s Huang said.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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