• Ethereum (ETH) has gained 40.43% YTD, reaching a 90-day high of $1,674 on Jan. 21.
• The upcoming Federal Reserve decision is expected to moderate inflation and affect the crypto market.
• The Shanghai upgrade will allow users to stake 32 ETH to become validators while also unlocking their funds indefinitely.
Ethereum Price Analysis
Ethereum (ETH) has kicked off the new year with an impressive gains of 40.43% YTD, reaching a 90-day high of $1,674 on Jan. 21.
Impact of the Federal Reserve’s Decision
The crypto community is looking forward to the Federal Reserve’s decision on interest rate hikes and expects it to retain stringent measures for keeping the economy in check. Most analysts anticipate a 25-basis points increase, which is lower than the December hike of 50-basis points.
What Affects Ethereum Price?
Ethereum has established itself as the platform of choice for developers, entrepreneurs, and investors due its wide range of capabilities such as DeFi and gaming. In order for Ethereum to continue progressing, various themes and questions such as scalability issues and user adoption will heavily influence its path.
The Shanghai upgrade (EIP-4895) is set to usher in a new era for Ethereum with its transition from proof-of-work consensus mechanism to a proof-of-stake one that allows users to stake 32 ETH in order to become validators while also unlocking their funds indefinitely.
Potential Gains for 2023
With all these factors taken into consideration, Ethereum looks poised for potential gains during 2023.