Ethereum Continues Stretching Gains Against Bitcoin 4 Days After Shanghai

Dalmas Ngetich

2 years ago

2 mins read

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The Ethereum uptrend continues when writing on April 18, four days after the smart contracting platform activated the much-anticipated Shanghai Upgrade. As Ethereum bulls double down, the coin has outperformed Bitcoin, the world’s largest cryptocurrency by market cap. ETH is up roughly 15% in the last week of trading versus Bitcoin.

Ethereum Outperforming Bitcoin

ETH is trading at 0.0708BTC and at a new April 2023 high. Moreover, it is within a bullish breakout formation versus Bitcoin. A notable development in the past few days is the solid break above recent resistance, now support, at around 0.0677BTC on April 14.

ETHBTC Daily Chart: Source: Binance, TradingView

While the recovery of prices has been impressive, ETH bulls have yet to reverse losses posted against Bitcoin from early March completely. Moreover, for the better part of Q1 2023, Bitcoin bulls had the upper hand against Ethereum. To illustrate, Bitcoin added approximately 20% against Ethereum, with noticeable gains visible in mid-March 2023.

In mid-March 2023, there were fears of a banking crisis in the United States. Three banks had collapsed quickly with the bank run of the Silicon Valley Bank (SVB), a regional bank, sparking fears.

The de-pegging of USDC, a stablecoin, also saw users move their assets to, among other coins, Bitcoin. Furthermore, news that Binance will also purchase BNB, Ethereum, and Bitcoin provided much-needed momentum.

Will Bulls Sustain The Uptrend After Shanghai?

However, after weeks of underperforming Bitcoin, the tide is beginning to shift in favor of Ethereum. Although recovery can be traced to April 10, the rapid expansion of ETH prices versus Bitcoin is marked on April 14. On this day, the Shanghai Upgrade went live, allowing validators and stakers to withdraw their coins from the Beacon Chain, boosting ETH liquidity.

Before the upgrade, on-chain data revealed over $32 billion worth of ETH was locked up in the official deposit address. Interestingly, while some validators and stakers have since withdrawn their coins, the dollar value of assets tied in the Beacon Chain exceeds $39 billion. The expansion could be partly due to the appreciation of ETH prices over the past few trading days, pushing the coin above the $2,000 level.

Shanghai has completely turned Ethereum into a proof-of-stake platform, with coin holders able to withdraw their assets. Besides Shanghai, the simultaneous update through Capella introduced consensus changes, making the mainnet more secure, performant, and efficient.

Whether ETH will continue outperforming Bitcoin in the days ahead remains to be seen for now. However, it is vital for ETH bulls to firmly push above 0.072BTC, or February and March 2023 highs, in a breakout. This could be the base of another leg up towards Q1 2023 highs of 0.078 BTC.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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