In anticipation of its imminent network upgrade, Ethereum (ETH) saw a spike on Tuesday morning to an eight-month high.
A price level not seen since August was reached as the bitcoin traded at $1,884. The Shanghai update, code-named « Shapella », is planned on April 12 and will signify Ethereum’s full switch from a proof-of-work (PoW) to a proof-of-stake (PoS) network. The price has decreased somewhat from the morning peak. For the first time since the previous Merge upgrade in September, users may now withdraw their staked Ether following the upgrade.
By switching to a PoS network, users will have the opportunity to generate passive revenue by staking their cryptocurrency, which will significantly lower the network’s energy consumption by 99.9%. Receiving compensation for making contributions to the blockchain network is known as staking.
Analysis of the ETH Market
At the time of writing, Ethereum (ETH) is trading at $1,886.94, down 1.33% over the previous 24 hours but up 5.45% over the previous week. With a market capitalization of $228,079,770,182, the cryptocurrency has 120 million ETH in circulation.
A 22.50% drop from the day before was seen in the trading volume for ETH during the last 24 hours, which was $10,149,307,282. It denotes a recent decline in market activity. Ethereum reached its highest recorded price of $4,878.26 on November 10, 2021, and its lowest recorded price of $0.432979 on October 20, 2015.
The current price of ETH is 61.18% lower than the all-time high while being 437,282.22% higher than the all-time low. With a price gain of 5.50% over the last week as opposed to the market’s 2.00% growth, Ethereum has surpassed the whole cryptocurrency market.
Recent ETH Price Analysis
According to the previous study, the price of ETH has been fluctuating over the past three weeks along a strong resistance zone at a level around $1850. Since the beginning of 2023, there had been an upward trend, forming an ascending triangle pattern with rising trend lines as support and a horizontal level of resistance, indicating a clear buying trend.
It was difficult to make a possible breakout move due to the persistently strong resistance levels, which signaled increased selling pressure. The 50-day moving average and 200-day moving average were both trading substantially below the market price, with the 50-day moving average trading below the $1700 psychological support level.
At the time, the price of Ethereum was in a retracement, but the $1700 support level may have helped it recover and overcome the level of resistance. Based on where traders saw the rising trendline support of the ascending triangle, a price objective of between $3,350 and $3,900 would be suggested if this were to happen by the ascending triangle’s bullish pattern.
ETH/USD Daily Chart Analysis
With prices fluctuating between $1700 and $1850, the ETH price has been in a lengthy period of consolidation near the $1850 resistance zone. On the other hand, starting in the first week of April 2023, the price of ETH broke through the barrier and traded at $1891, just shy of the $2000 objective. The ETH price is trending strongly upward as shown by the 200-day and 50-day moving averages, with the 50-day moving average serving as support. With a price of 63, the relative strength index is also doing well.
Ethereum Price Prediction
According to the technical analysis above, the price of ETH is on the rise. However, the buying trend may be short-lived due to the resistance at $2032. This places our ETH projection at $2032. If the retracement occurs, an inverse forecast of $1900 is made.
