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Are you ready for the next big upgrade to the Ethereum network? The Shanghai hard fork, also known as the “Shapella” upgrade, is set to be rolled out on April 12th, and it’s already causing a stir in the crypto community.

According to Max Williams, the chief operating officer at digital asset-management firm Runa Digital Assets, the upgrade is set to benefit Ethereum-based layer 2 blockchains, allowing developers to focus on improving users’ experiences. In a report on the upgrade, Williams noted that the layer 2 sub-sector is “already trending well,” and that the upgrade will give developers the time “to shift their attention to improving the user experience on layer 2s.” So, if you’re interested in layer 2 technologies, this upgrade is definitely something to keep an eye on.

But that’s not all. The Shanghai upgrade is also the final step in Ethereum’s migration to a proof-of-stake method of maintaining the network. This will allow withdrawals from staking ETH, which is a major development for anyone invested in the cryptocurrency. Additionally, the upgrade is expected to lower fees for users and increase Ethereum’s capacity to handle transactions, making it a win-win situation for everyone.

So, what does this mean for the price of ETH? Well, after hitting its highest level in almost eight months on Wednesday in the mid-$1,900s, Ether is experiencing a modest pullback and was last changing hands in the mid-$1,800s. However, the cryptocurrency’s near-term technical outlook continues to look good. ETH has been finding decent support recently from its 21-Day Moving Average, and all of its other major moving averages are on the rise in consecutive order.

The fact that ETH is currently finding decent support in the mid-$1,800s has spurred optimism that an extension of gains in the short-term toward the August 2022 highs just above $2,000 remains a strong likelihood. Moreover, ETH’s 14-Day Relative Strength Index (RSI) is not yet in overbought territory, suggesting a reduced risk of near-term profit-taking.

But there are some concerns that, in the wake of the Shanghai upgrade, ETH could experience some short-term selling pressure. The so-called “sell-the-news” reaction is a real possibility, and some analysts have warned that there could be price pressures as investors sell ETH tokens that have been stuck in staking contracts for a long time. However, most analysts view the development as a long-term positive for the network, and it is assumed that more flexible staking withdrawals will eventually attract many more ETH owners into staking their tokens.

Overall, the Shanghai upgrade is set to be a game-changer for Ethereum and its community of developers and investors. Whether or not ETH hits all-time highs in 2023 remains to be seen, but one thing is for sure – the future of Ethereum is looking brighter than ever.