The price of Ethereum’s ether token remains resilient even after the blockchain officially implemented Shappela, its Shanghai upgrade, a week ago. It is also expected that the token will continue to rally or at least remain constant until the end of the month.

According to a report released by crypto exchange Coinbase on Friday, April 14th, the successful implementation of the Shappela upgrade supported ether’s price action which proved to be better than anyone’s forecast. 

Shappela will allow validators to withdraw any staked ether tokens which were locked up and to earn rewards.

Limited Supply

However, almost within 24 hours of the upgrade the supply of ether has become limited for several reasons.

According to analysts Brian Cubellis and David Duong, this is partly due to how most of the addresses that got partial withdrawals have yet to spend claimed rewards. In fact, nearly 70% of these addresses have properly set their withdrawal credential prefixes to 0x01.

Likewise, while full withdrawals are being processed, the impact they have on the market was offset by a large slew of new entries to the validator entry queue.

Cabellis and Duong also pointed out that ether still underperforms year to date compared to industry leader bitcoin. This essentially gives Ethereum a great deal of room to catch up following the Shanghai upgrade. 

Coinbase analysts also say that they have seen quite a bit of rotation from Bitcoin to Ether due to this underperformance.