Cryptocurrency Markets Trade Sideways Ahead of Ethereum Shanghai Upgrade

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Cryptocurrency markets traded sideways on Sunday night, with investors keeping an eye out for the upcoming Ethereum Shanghai upgrade.

Cryptocurrency Gains (+/-) Price (Recorded 9:30 p.m. EST)
Bitcoin BTC/USD +0.75% $28,281
Ethereum ETH/USD -0.40% $1,850
Dogecoin DOGE/USD +0.65% $0.082

What’s Happening: Investors are eagerly awaiting the upcoming Ethereum Shanghai upgrade, but despite the buildup, there doesn’t seem to be any signs of selling pressure. This is partially due to the fact that a large portion of staked Ethereum ETH/USD is now in the red, according to CryptoQuant’s February research report.

See Also: Best Crypto Day Trading Strategies

The global crypto market capitalization was at $1.19 trillion as of press time, a 0.37% increase compared to the previous day. Meanwhile, tech stocks pushed the S&P 500 into the green on Thursday, with the index rising by 0.36%. The Nasdaq Composite, a tech-focused index, outperformed the S&P 500 with a 0.76% gain.

Key News Highlights: A flaw in the decentralized exchange SushiSwap’s smart contract has led to the unauthorized withdrawal of around $3.3 million worth of Ethereum. According to the crypto analytics firm PeckShield, the problem lies in the contract’s approval process, which was changed a few weeks ago.

Analysts’ Opinion: “Bitcoin was mostly unaffected by the nonfarm payroll report. It appears that crypto traders are getting ready for the long weekend as the market remains in consolidation mode. For the bulls to take control, Bitcoin needs a more favorable macroeconomic environment,” said Ben Caselin, Vice President of MaskEX, a Dubai-based crypto exchange.

Edward Moya, senior market analyst at OANDA, added, “The crypto market as a whole was relatively flat due to the holiday. There could be potential regulatory issues regarding Binance this week, and investors will be keeping a close eye on how the situation develops. The Shanghai upgrade of the Ethereum blockchain is also a major event for the market and could lead to significant price movements. As we get closer to the Bitcoin halving in 2024, BTC is entering a bullish phase, though this could be disrupted if macroeconomic conditions worsen.”

Michaël van de Poppe, a crypto analyst, said, Bitcoin BTC/USD is consolidating at a key support level and could surge to $28,500. If BTC manages to break through the crucial resistance level between $28,600 and $29,000, it could lead to a major breakout. “Investor confidence will come back, and more altcoins will start to surge,” he added.

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