Only a few days left until Ethereum’s highly anticipated Shanghai hard fork. According to analyst Vivek Raman, although it will cause downside pressure in the short term, the Shanghai upside will be quite bullish for the coin in the medium to long term.
How will the Shanghai upgrade affect the cryptocurrency market?
While it may have some short-term negative effects on ETH price, the upcoming Shanghai update will be highly positive for ETH as it will attract more capital for staking and improve the security of the network, according to Ethereum researcher Vivek Raman.
The Shanghai upgrade, scheduled for April 12, will allow network validators to withdraw funds that have been locked in to secure the network since December 2020. After Shanghai, about 18 million ETH will be ready for withdrawal. According to Raman, this could lead to some selling pressure on the price of ETH in the short term.
Raman later stated that it would “reduce ETH investment risk tremendously” as it can be repurchased in the long run. In particular, institutional investors who were not previously involved in staking will feel more comfortable when ETH is removed from staking. More capital going into ETH staking will improve the Ethereum network in the long run.
ETH price registers further gains against Bitcoin in April
Ethereum price gained momentum against Bitcoin in April as there are only a few days left until the highly anticipated Shanghai hard fork. Ether has dropped over 7.5% on the Bitcoin pair in 2023. However, ETH/BTC may fully wipe its year-to-date losses in April, as Ethereum’s long-awaited Shanghai hard fork is only a few days away.
ETH price is experiencing a significant technical jump
Many experts think that the upgrade appears to be bullish for Ether in the long run. As a result, the ETH/BTC pair is up about 4.75% month-to-day to reach 0.066 BTC as of April 8, and has rebounded around 8% since March 20.
The bounce was largely expected, especially as ETH/BTC fell to historical ascending trendline support. Now, the upside move raises the possibility of a long bullish correction towards the descending trendline resistance, which is marked as a “sell zone” on the chart below.
The fractal-based outlook puts Ether at a target of 0.075 BTC by June, up 10% from current price levels. Meanwhile, the pair’s upside target for April appears to be the 50-3B exponential moving average (50-3B EMA; red wave) near 0.069 BTC.
Conversely, a firm close below the 200-3D EMA (blue wave) near 0.066 BTC, coinciding with the support/resistance near 0.067 BTC risks delaying or – in the worst-case scenario – invalidating the bullish retracement setup. This bearish argument echoes independent market analyst CrediBULL Crypto, who expects strong selling pressure near the 0.067 BTC resistance level that will drop 50% in 2023.
Ethereum and US dollar outlook
The ETH/USD pair rallied more than 50% in 2023, mainly due to similar uptrends elsewhere in the crypto market.
A weakening dollar, lower U.S. Treasury yields, and expectations for the Fed to return to interest rate hikes helped the cryptocurrency market generally soar in the first quarter. These catalysts will likely remain on the agenda until the Federal Open Market Committee meeting in May.
As a result, Ether could sustain its annual gains in April, consolidating in the $1,800-2,000 range until the Fed decision. Also, a decisive break in current levels could result in sustained gains with the second-quarter ETH price target above $3,000.
On the other hand, the bears will try to push the price below $1,800 and the lower trendline of the triangle is near $1,600 as the downside target.
cryptocoin.comAs you follow, ETH price is trading in the $1,830 region, down 0.75% on April 9.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.