Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced considerable price fluctuations in April, with a price of $1,871 as of April 12, reflecting a 2.5% decline over the past 24 hours.
Meanwhile, the highly anticipated Shanghai hard fork of Ethereum, scheduled for today, April 12, will allow staked ETH withdrawals, raising concerns about potential sell-side pressure on the market.
This article will delve into recent events and factors affecting the ETH price trajectory.
Ether struggles to break resistance
ETH attempted to break above the $1,925 and $1,940 resistance levels but failed to establish itself above the $1,925 resistance zone.
Consequently, a bearish reaction ensued, pushing the price below the $1900 level. The drop also broke a key uptrend line with support near $1870 on the hourly chart.
Ether is currently trading below $1880 and the 100 hourly simple moving average, showing several bearish signals below the $1865 support.
If the price recovers, it could face resistance near $1,880 and the 100 hourly simple moving average.
The ETH/BTC chart indicates a downward trend
More indicative of future ETH price movements than the ETH/USD chart, the ETH/BTC chart reveals that ether has been in a downtrend since September 2022.
This suggests that funds are flowing from ETH to BTC, with BTC now trading at its highest level since June 2022.
In order for ETH to turn bullish, it must break out of the downtrend on its BTC chart or close a day above $2,030 on its USD chart.
However, both scenarios are unlikely if BTC/USD is rejected from $30,000.
Price action will likely remain volatile this week due to the release of the CPI report on April 12.
Ethereum Price Predictions
With a bullish mood, cryptocurrency enthusiasts and market analysts have been talking on Twitter about ethereum price predictions.
Bullish Traders, a Twitter account known for its trading savvy, highlights that Ethereum remains above the $1850 mark, maintaining momentum in favor of the bulls.
Another tweet emphasizes the formation of an ascending triangle of ether, a technical indicator that points to a bull market ahead.
According to his estimates, the next stop for ETH’s bull run is $2,000, while the bearish target remains at $1,600.
Meanwhile, a Coincodex price forecast predicts that by April 17, 2023, the price of ETH could reach $2,089.26, which is an increase of 11.53% from its current market price.
As always, traders should remember that the crypto landscape is notoriously volatile and price predictions are far from foolproof.
the road ahead
The Shanghai Update presents a multifaceted picture of market factors, long-term implications, and potential consequences.
Understanding these aspects is essential to understand the impact of the update on the Ethereum ecosystem.
As Ethereum continues to evolve with upgrades and further development, the Shanghai hard fork will serve as a critical milestone, shaping its future trajectory and growth potential.
