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Ethereum Blockchain Upgraded in Shanghai: JPMorgan and Fidelity Present Different Views on ETH Price Impact

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According to reports, the Ethereum blockchain has been upgraded in Shanghai, and reports from JPMorgan Chase and Fidelity have shown different views on the impact of ETH prices. JP

Ethereum Blockchain Upgraded in Shanghai: JPMorgan and Fidelity Present Different Views on ETH Price Impact

According to reports, the Ethereum blockchain has been upgraded in Shanghai, and reports from JPMorgan Chase and Fidelity have shown different views on the impact of ETH prices. JPMorgan analysts stated in a recent report that they expect Ethereum to face “some selling pressure” as upgraded validators can receive Ethereum pledge rewards worth over 1 million. Analysts said, “If there is potential additional selling pressure on the mortgaged Ethereum balance belonging to troubled entities, then the selling pressure in the coming weeks may be even greater. They added that they expect Ethereum to perform worse than Bitcoin in the coming weeks

There is disagreement between JPMorgan Chase and Fidelity regarding the price impact of Ethereum Shanghai’s upgraded ETH

Introduction

Recent reports claim that the Ethereum blockchain has been upgraded in Shanghai. While this news may sound promising for some, financial experts have varying opinions on its impact on Ethereum prices. JPMorgan Chase and Fidelity, for instance, have differing views about what may happen to the prices.

What is the Upgrade?

Before diving into the impact of the upgrade, let’s briefly discuss what it entails. The Shanghai upgrade is essentially the deployment of the Ethereum Improvement Proposal (EIP) 1559. This new protocol aims to improve the user experience by reducing transaction fees and increasing transaction speed. It will also adjust how network fees are allocated, thus changing the way users pay for transaction fees.

JPMorgan’s Prediction

JPMorgan analysts recently published a report stating that Ethereum could face “some selling pressure” following the upgrade. The analysts noted that the upgraded validators will soon receive Ethereum pledge rewards worth over 1 million. They explained that if there is potential additional selling pressure on the mortgaged Ethereum balance belonging to troubled entities, then the selling pressure in the coming weeks may be even greater.
The analysts added that they expect Ethereum to perform worse than Bitcoin in the coming weeks. This prediction is alarming for some since Ethereum is currently the second-largest cryptocurrency globally, with a market capitalization of over $470 billion.

Fidelity’s Opinion

In contrast, Fidelity claims that the upgrade could lead to a surge in Ethereum prices. Speaking to CNBC, Romaine Hass, the Vice President of Fidelity, said that the upgrade was a positive one for the blockchain industry as a whole, adding that it could improve the stability of the network.
Hass believes that the reduced transaction fees will prompt more people to use the network, which will increase demand and subsequently boost the price of Ethereum. He also pointed out that the upgrade would make Ether a more deflationary asset, which could also be bullish for the cryptocurrency’s price.

Conclusion

Looking at the opinions of both financial houses, it is evident that there is still much speculation about what the upgrade will do to Ethereum’s prices. While JPMorgan’s prediction may seem bleak, calling Ethereum’s performance worse than Bitcoin’s, Fidelity’s positive take on the matter represents an exciting potential outcome for the cryptocurrency.

FAQs

1. What is the Ethereum Improvement Proposal?

The Ethereum Improvement Proposal (EIP) is a proposal system that aims to improve the Ethereum network through consultations and integration with the developers and the community at large.

2. How does the Shanghai upgrade affect Ethereum users?

The Shanghai upgrade introduces EIP 1559, which aims to reduce transaction fees and increase transaction speed for Ethereum users. The upgrade will also adjust how network fees are allocated, changing the way users pay for transaction fees.

3. Should I buy Ethereum after the upgrade?

It is impossible to predict the exact impact of the upgrade on Ethereum’s price, so one should conduct due diligence before making any investment decisions.

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