Ethereum price was in the green earlier on Tuesday after falling for two consecutive days ahead of its Shapella upgrade. The altcoin has managed to move above the crucial level of $1,800. At press time, ETH was trading slightly higher at $1,817.75, with a 1.64% increase in its market capitalization. The total volume of Ethereum traded in the past 24 hours has increased by 43.44%.
Ethereum price has been trading sideways for the past few days amid a slowdown in buying pressure. The biggest altcoin by market cap slipped to $1,771.70 earlier on Monday as investors digested the latest announcement by OPEC+.
The Organization of Petroleum Exporting Countries (OPEC) announced that it would cut back its oil output by 1.16 billion barrels per day starting from May 2023. The announcement saw crude oil futures jump by more than 5% while cryptocurrencies slipped further. Surging oil prices could stoke up inflationary pressures, prompting the Fed to impose more aggressive interest rate hikes. Higher interest rates are detrimental to risk-sensitive assets such as cryptocurrencies and stocks.
The recent climb in the US Dollar Index over the weekend also weakened the overall sentiment in the global crypto market. An increase in the Dollar index means a stronger US dollar, which is bad for risk assets. However, the dollar index lost traction later Monday after weak ISM Manufacturing data, pumping some liquidity into the crypto market.
Investors are now eyeing the fast-approaching Shanghai upgrade, also known as Shapella, on the Ethereum platform. Ethereum holders are geared up for an explosive move in the Ethereum price with the upgrade.
Ethereum Price Analysis
Ethereum price has been trading sideways for the past few days ahead of the long-awaited Shanghai hard fork. The 4-hour chart shows that ETH has managed to remain above the 25-day and 50-day moving averages. It is also moving slightly above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) is in the neutral zone, while the Moving Average Convergence Divergence (MACD) indicator is slightly bearish.
Therefore, the Ethereum price is likely to fall further in the short term, but the move will be temporary or short-lived ahead of the Shapella upgrade. Even so, I expect the altcoin to remain above the important level of $1,769.05.