Ethereum (ETH), the second-largest cryptocurrency by market cap, experienced considerable price fluctuations in April, with the price sitting at $1,871 as of April 12, reflecting a 2.5% decline in the last 24 hours.
Meanwhile, Ethereum’s highly anticipated Shanghai hard fork, scheduled for today, April 12, will enable withdrawals of staked ETH, raising concerns about potential sell-side pressure on the market.
This article will delve into the recent events and factors affecting ETH’s price trajectory.
Ether struggles to break resistance
ETH attempted to rise above the $1,925 and $1,940 resistance levels but was unsuccessful in settling above the $1,925 resistance zone.
Consequently, a bearish reaction occurred, pushing the price below the $1,900 level. The decline also broke a key bullish trend line with support near $1,870 on the hourly chart.
Currently, ether is trading below $1,880 and the 100-hourly simple moving average, showing several bearish signs below the $1,865 support.
If the price recovers, it might face resistance near $1,880 and the 100-hourly simple moving average.
ETH/BTC chart indicates a downward trend
The ETH/BTC chart, more indicative of future ETH price moves than the ETH/USD chart, reveals that ether has been in a downtrend since September 2022.
This suggests that funds are flowing from ETH to BTC, and BTC is now trading at its highest level since June 2022.
For ETH to turn bullish, it either needs to 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 the BTC/USD gets 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 vibe, crypto enthusiasts and market analysts have been buzzing on Twitter about ethereum’s price predictions.
Bullish Traders, a Twitter account known for trading insights, highlights that ethereum remains above the $1,850 mark, keeping the momentum in favor of the bulls.
Another tweet emphasizes ether’s formation of an ascending triangle — a technical indicator pointing to a bullish market ahead.
Based on their estimates, the next stop for ETH’s bullish run is $2,000, while the bearish target lingers at $1,600.
Meanwhile, a price forecast from Coincodex predicts that by April 17, 2023, ETH’s price could reach $2,089.26, representing an 11.53% increase from its current market price.
As always, traders must remember that the crypto landscape is notoriously volatile, and price predictions are far from foolproof.
The road ahead
The Shanghai upgrade presents a multifaceted landscape of market factors, long-term implications, and potential consequences.
Understanding these aspects is essential for comprehending the upgrade’s impact on the Ethereum ecosystem.
As Ethereum continues to evolve with additional upgrades and developments, the Shanghai hard fork will serve as a pivotal milestone, shaping its future trajectory and potential for growth.