The Ethereum cryptocurrency has taken a huge leap in the past 24 hours, rising as much as 10.5% from yesterday. At the time of writing, one Ethereum is trading at USD 2,115, which is equivalent to almost USD 2,000.

The question many investors are now asking is: is this increase related to the recent update, which took place successfully on Wednesday?
Shanghai upgrades Ethereum
This update is, of course, the so-called Shanghai update. This update ensures that investors who have staked their ETH can finally withdraw their coins. This was not possible before, so this update was really necessary.
The expectation of many analysts was that all the ETH suddenly released would increase the selling pressure. In other words, the market would be flooded and the price of Ethereum would fall.
The opposite turns out to be true.
Update helps Ethereum with the course
Many investors are now speculating that the ETH surge is actually related to this update. Releasing pegged coins could lead to more trades and transactions on the Ethereum network. This can lead to increased demand for ETH, which in turn can drive up the price.

What is also possible is what Grayscale said earlier. That it is not too bad and that the number of released coins is quite small and has hardly any influence on the price.
Ethereum and NFTs
However, other factors may also contribute to the rise of ETH. For example, many investors are looking at Ethereum because of the rise of NFTs (non-fungible tokens). This is pure speculation as there is currently no major news regarding NFTs.
Cryptocurrency markets are often highly volatile and can be influenced by a variety of factors, making it difficult to say for sure what is driving ETH’s current surge. But one thing is certain, it was time for Ethereum to break above $2000 again.
Source: Btc Direct

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.