Why is Ethereum (ETH) price up today?

Ethereum (ETH) is witnessing a price breakout on the back of the successful Shanghai and Capella (Shapella) upgrades. The increased bullish sentiment after the upgrade led Ether price to hit a year-to-date high of $2,123 on April 14.

Ether price and sentiment dashboard. Source: Cointelegraph Markets Pro

The Ethereum decentralized finance (DeFi) ecosystem received more daily fees, growing 30% in 24-hours on April 14 in tandem with Ether’s price growth. With the increase in Ether fees, the Ethereum proof of stake (PoS) token economics have turned deflationary and revenue is up 32% in the past 24-hours. 

Ethereum network fees and revenue. Source: TokenTerminal

Although the Ethereum network is showing positive momentum, regulators are trending toward taking swift action against the crypto sector. Debates on whether Ether is a security token under the Howey test continue combined with privacy concerns that an Ethereum researcher says staking reveals IP addresses. 

Let’s review a few of the reasons for Ether’s newfound strength.

Ethereum Shanghai was a success

The long-awaited Shapella upgrade was officially executed to mainnet on April 12.

The Shapella hardfork was first slated to commence on March 14. At the time, on-chain data suggested the Shanghai hard fork would not bring massive sell pressure, yet some analysts believed the newly unlocked supply would hinder Ether price.

The current trend post-Shapella unlock shows that a majority of validators are withdrawing only staking rewards, rather than the 32 Ether needed to continue running a node. By April 14, the amount of staked Ether only decreased by 0.2%.

Staked Ether dashboard. Source: Nansen

Ether deposits spiked after the hardfork

Despite cumulative withdrawals outweighing Ethereum ecosystem deposits, 97,040 Ether has been staked in the previous 24-hours on April 14. The uptick in Ether staking deposits is a positive sign for the future of Ethereum post-Shapella. 

Ethereum post-merge deposits and withdrawals. Source: Nansen

On April 13, more than 70% of Ether stakers were underwater. After withdrawals and new depositors, the current Ether average staked price…

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