According to a research report by Coinbase, the successful upgrade of the Ethereum blockchain during the Shanghai Fork, also known as Shappela, supported better than expected price action for ether (ETH). The upgrade allows validators to withdraw staked ether and rewards that have been locked up, which has limited ether supply due to the majority of addresses receiving partial withdrawals not spending their rewards and a healthy number of new entrants in the validator entry queue. Furthermore, ether's relative underperformance versus bitcoin year-to-date has left room for catch-up post the upgrade, leading to some rotation from bitcoin into ether. The macro environment also remains conducive to risk-taking, which may support ether's price through the end of April.

(By Will Canny)