Ethereum jumps to its highest price in 8 months ahead of highly anticipated network upgrade

• Ethereum traded at a 24-hour high of $1,884, price levels not seen since August 2022.
• The Shanghai upgrade is slated for April 12 and will mark Ethereum's full transition to a proof-of-stake network.

Ethereum surged to an eight-month high on Tuesday morning ahead of its long-awaited network upgrade.

The cryptocurrency traded at a 24-hour high of $1,884, price levels not seen since August. Ether has parred some gains since its morning peak, according to Messari, but is still up roughly 4% in the past day.

The Shanghai upgrade, often referred to as "Shapella," is slated for April 12 and will mark Ethereum's full transition from a proof-of-work (PoW) to proof-of-stake (PoS) network. The event will enable users to withdrawal their staked ether for the first time since the previous Merge upgrade in September.

The move from PoW to PoS network reduces energy consumption of the network by 99.9%, and allows users to earn passive income in other ways by staking their crypto. This is the process of earning financial rewards for contributing to the blockchain's network.

"While analysts debate the short-term effects of this upgrade, it's no doubt bullish for Ethereum going forward as it massively reduces its energy consumption and provides more favorable ESG optics when compared to bitcoin," Nathan Thompson, lead tech writer at crypto exchange Bybit, told Insider. "Furthermore, the smooth upgrades and consistent delivery of Ethereum's roadmap have boosted investor confidence and piqued the interest of institutional investors."

Crypto markets have been on a tear despite murky macro conditions from the Federal Reserve's interest rate hikes and a slew of high-profile bank failures. Bitcoin and ethereum jumped 67% and 49% in the past three months, respectively.

"With the US banking system in peril, we've seen a rise both in bitcoin's price and bitcoin dominance vis-à-vis the rest of the crypto market," Ben Caselin, Vice President at crypto exchange MaskEX, told Insider. "As has often been the case, historically, following a serious and extended bitcoin rally, a return of investor confidence and enthusiasm can find expression in a so-called 'altcoin season.'"