Ethereum Shanghai and Capella upgrades on April 12
The second-largest cryptocurrency by market capitalization shrugged off rumors and regulatory action against exchanges to hit a seven-month high of $1,922 on April 5.
Ether price has momentum, and here are three strong reasons why.
Multiple positive price achievements
According to data from Cointelegraph Markets Pro and TradingView, Ether price has posted gains on the seven-day, one-month and three-month timeframes despite market volatility. Ether price gains are also notable from the year-to-date perspective, showing 59% growth.
Ether’s ability to break resistance levels is leading some analysts to believe a $3,000 price target is on the horizon in Q2 2023. The trend shows that whale accumulation remains strong, growing by 0.5% in March, according to data from analytics provider Santiment.
The bullish buying activity may prove on-chain data correct that Ether sell pressure after the Shanghai hardfork will be a non-event.
The uptick in proof-of-stake validation by placing Ether in staking contracts is bullish for the Ethereum ecosystem. Since launching on Aug. 4, 2021, the Ethereum network has witnessed over 18 million ETH staked on the blockchain.
ETH Turning Bullish
A widely followed crypto analyst says key indicators are flashing bullish signals for Ethereum (ETH) for the first time since November 2021.
In a new strategy session, pseudonymous crypto trader Altcoin Sherpa tells his 194,400 Twitter followers that the price of Ethereum is now trading above its one-day Exponential Moving Averages (EMAs) after a breakout.
Traders look at the EMA to determine whether an asset’s price is in an uptrend or not. If the price remains above the EMA, then the asset is likely going to remain bullish.
“Like Bitcoin, Ethereum finally has had a first bullish flip of all the one-day EMAs. That’s something we haven’t seen for many months. We haven’t really truly seen that since November 2021. We see on higher timeframes ETH, finally EMAs all look really solid. They’ve all tightened up and consolidated and we are now in a bullish trend in that regard.”
However, the trader warns that the top smart contract platform’s recent upswing could soon lose steam. He says the $2,000 level could act as resistance, and in the near term, ETH may dip back to the $1,700 level.
“Now, it’s important to note that we would really like to see a lot of follow up here. If you start to see a lot of trading and just a lot of consolidation here and it’s just chopping around, it’s more likely that this is just going to be a deviation and price is just going to go back within the trading range. And that’s probably, honestly, the more likely scenario.
When you see a breakout like this, you want to see some strong volume. You want to see more follow up and you want to see more momentum. If you start to see this chop around this area longer, then I think it’s more likely that this just goes right back within the trading range, and if it does go back within the trading range you would just look for one of these EMAs, probably $1,750.”
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