Ethereum Starting to Breakout, Rallies 49% in Q1 2023

Ethereum’s value outperformed other crypto assets and stocks in the first quarter.

In a tweet shared today by IntoTheBlock, Ethereum, the second-largest crypto asset by market value, performed significantly better than most cryptocurrencies and other traditional assets in the first quarter.

According to data shared by IntoTheBlock, Ethereum recorded a gain of 49% in Q1 2023. Ethereum’s value surged massively in the first quarter of 2023 despite the collapse of Silicon Valley Bank and the corresponding reactions from the Fed.

It bears mentioning that Ethereum kicked off the year at around $1,196. Interestingly, the crypto asset ended the quarter around $1,800, data from Coingecko shows. At press time, Ethereum is changing hands at $1,878, up 4% over the past 24 hours.

Despite Silicon Valley banks' collapse & Fed's "crackdown", #ETH has outperformed many crypto assets & stocks with a 49% quarterly increase. A strong reminder of its resilience & potential in the digital economy. #Ethereum pic.twitter.com/n6P3zXKbuJ

— IntoTheBlock (@intotheblock) April 4, 2023

Aside from ETH’s Q1 2023 growth of 49%, the crypto asset is currently up 57% Year-to-Date.  

Commenting on Ethereum’s price surge today, seasoned cryptocurrency analyst Ali Martinez said the second-largest crypto “appears to be breaking out.” He pointed out that Ethereum’s next critical resistance sits between $2,100 and $2,150. According to data shared by Martinez, the price range marks the level where 203.1K addresses purchased 18.44 million ETH coins. 

#Ethereum appears to be breaking out!

On-chain data reveals that the next critical resistance area is between $2,100 and $2,150, where over 200K addresses had previously purchased over 18M $ETH. pic.twitter.com/upyxqBqmKl

— Ali (@ali_charts) April 4, 2023

Several factors are responsible for the rapid surge of Ethereum’s value in Q1 2023. Recall that crypto prices slumped toward the end of the year due to the collapse of the leading cryptocurrency project FTX. However, investors’ sentiments changed from the beginning of the year.

The crypto market further went parabolic after the collapse of three banks, including Silvergate and Silicon Valley Bank. 

Shanghai Upgrade May Lead to Massive ETH Selloff

However, the upcoming Ethereum Shanghai upgrade slated for later this month could wreak havoc on the asset’s price. The Shanghai hard fork, slated to go live on the Ethereum mainnet on April 12, will allow users to withdraw their staked ETH for the first time.

According to Etherscan data, the staking contract currently has over 18.04 million ETH valued at around $33.87 billion. Since the Shanghai update will enable users to withdraw their staked tokens, many believe the development could mount selling pressure on the asset class.