Share this article
Bernstein Sees 'Cautious' Ether Price Until Shanghai Upgrade
The firm noted that investors are worried about a "supply overhang."
By Will Canny
Updated Apr 9, 2024, 11:30 p.m. Published Mar 1, 2023, 12:14 p.m.
Ether’s (ETH) price action is expected to be “cautious” until the Ethereum blockchain’s Shanghai upgrade, due later this month, as the market is concerned about a supply overhang, Bernstein said in a research report Wednesday.
The Shanghai fork will allow ether that has been staked and is now locked to be withdrawn for the first time.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bernstein’s analysis shows the supply increases are likely to be spread over a few weeks, even months, resulting in little selling pressure on a daily basis. The brokerage firm sees a limited impact on the supply of ether, but noted that weak sentiment due to "unstaking" could put pressure on ether's price before the upgrade..
On the positive side, the market expects the removal of a lock-in to lead to more people staking their ETH, which will give investors confidence with unstaking.
“The availability of and wide adoption of existing pooled staking tokens that have held their peg well negates the case for a significant increase in staking immediately after the Shanghai upgrade,” analysts Gautam Chhugani and Manas Agrawal wrote.
The “Shanghai upgrade may attract some additional staking from institutional investors (who may not want to stake through liquid staking platforms),” they added.
Bernstein said the “steady-state staking penetration” for Ethereum will gradually increase and the Shanghai upgrade is a step in that direction.
Read more: Coinbase: Ether Selling Pressure Should Be Fairly Limited Around the Shanghai Fork Upgrade
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
Top Stories
