Ethereum Is Back Above $1,600 As Countdown To Shanghai Upgrade Continues: Is $2,000 Underway?
Ethereum (ETH) has been on an uptrend since late November, consolidating within a bullish technical formation. The competitive price action between bulls and bears has set the second-largest crypto by market cap on a course toward a potential bullish move. At the time of writing, ETH was trading at $1,603 after gaining 0.28% on the last day.
Ethereum Price Racing For $2,000 Before March’s Shanghai Upgrade
Now that the Ethereum price is back above $1,600, investor hope is rejuvenated. Evidence of this is the tremendous amount of capital inflow into Ethereum’s market capitalization over the last day. The decentralized finance (DeFi) asset recorded a market cap of $196.3 billion.
Notably, Ethereum’s Shanghai upgrade is almost here. The event will facilitate the phased release of staked Ether (stETH). This major event has investors hoping for the biggest altcoin to reclaim $2,000.
#Ethereum‘s most awaited hard fork since The Merge is happening soon – the Shanghai Upgrade.
And @BinanceResearch is here to help you stay on top of what to expect and the opportunities that this new upgrade could present 🤝
Have a read ⤵️ https://t.co/FcVHaSYaai
— Binance (@binance) February 22, 2023
The expected rally draws support from history, given The Merge event also saw the digital asset record massive gains. This came as the network recorded an enormous capital influx attributed to investors’ ‘buy the rumor, sell the event’ narrative.
The Shanghai upgrade will deliver more flexible staking alternatives to investors. It is no wonder the hype around the upgrade. Among the expected staking options is liquid staking, which many market players anticipate. Analysts believe this will impact Ethereum’s price positively.
#DOGECOIN #BTC #SHIB #Cryptonews BTC and ETH hold onto support as VC exec maintains bullish prediction – https://t.co/jPG5hbK9du –
Chris Burniske says Ethereum could outperform Bitcoin in March due to the Shanghai upgrade.
Burniske is a partner at crypto-focused VC Placeholde…
— Crypto-prijzen.nl (@Crypto_prijzen) February 26, 2023
Ethereum’s supply versus demand dynamics and staking narratives are among the driving forces for expected price gains. Accordingly, institutions have begun gathering ETH tokens. For instance, several funds and institutions have invested more than $1.6 billion in the crypto market. According to on-chain detective ‘Lookonchain,’ BTC and ETH recently hit new highs for 2023.
1/ Why did the price of $BTC/$ETH suddenly rise today?
We found that several funds/institutions poured nearly $1.6B into the crypto market since Feb 10!👇 pic.twitter.com/WRaSv4YtgP
— Lookonchain (@lookonchain) February 16, 2023
This was a positive sign for the two giant cryptos.
As it stands, $1,700 appears to be the next critical resistance level for Ethereum to tag next and secure support. If this thesis pans out, it could push the ETH price to the $2,000 level. Conversely, if such a move fails, the price could drop below $1,450 or further south to $1,300.
Will ETH Do The 70% Climb?
The bullish outlook for Ethereum price comes as the token has been moving within a bullish chart pattern. This is an ascending parallel channel, as shown below. If the price keeps moving within this tunnel, it will continue bagging more profits for investors or recouping the losses incurred across 2022.
ETH price is currently confronting immediate resistance at $1,700 as bulls struggle to regain some of the losses incurred over the past few days. If buyer momentum increases past this level, it will deliver the bulls to confront the resistance offered due to the upper boundary of the ascending parallel channel.
Past this level, the price could soar past key levels to retest the $2,000 last visited in August. Such a move would indicate a 70.59% increase from yearly lows of $1,188 and a 26% ascent from current levels.
ETH/USD Daily Chart
The price was standing on the support provided by the 50-day Simple Moving Average (SMA) at $1,579. Investors could use this base to refresh their buyer power. Other breathing zones within arm’s length for Ethereum bulls were the 200-day SMA and the 100-day SMA at $1,437 and $1,402, respectively. The bulls could also depend on the channel’s lower boundary for support.
Given that the 50-day SMA was moving upwards, some buyers were interested in buying the token. Similarly, the moving average convergence divergence (MACD) was still within the positive territory above the zero line. This signified there were more buyers than sellers in the Ethereum market.
On the downside, if investors decide to book early profits, the price could drop, losing the 50-day SMA support first, before the remaining two SMAs. If the price breaks below the lower trendline, the bears could take charge of the Ethereum market, sending the price to unprecedented lows.
The relative strength index (RSI) was flattening out, the price strength was 49, and the Stochastic RSI was 54. All these were concerning signs, showing the price could drop. The histograms were also soaked in red to show the presence of bears in the market.
ETH Alternative To Buy
While investors count the days to the Shanghai upgrade, diversify your portfolio with TARO, the ticker token for the RobotEra ecosystem. The project’s TARO token is in the presale stage, where it has collected upwards of $937,000 in token sales.
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The project is at the forefront of the metaverse era, bringing forth an innovative operational mechanism. Thus far, RobotEra has received massive community support as early entrants enjoy discounted prices from as low as 0.025 USDT.
Analysts are also bullish about TARO, saying it is among the new innovative projects that will explode in 2023.
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