Ethereum price has been strongly bid around the $1,750 zone for the past few days ahead of its Shanghai upgrade. At press time, ETH was trading 1.25% lower at $1,751.81. The coin’s price has slipped by nearly 2% in the past week, but its year-to-date price remains 46% higher. Ethereum’s market capitalization has limped over the last day, while the total volume of the coin traded jumped by more than 15%.
Shanghai Upgrade in Focus
Ethereum price staged a strong comeback in March, climbing more than 26% from its lowest level this month. ETH’s winning streak might be tied to the ongoing banking fiasco which has seen customers lose faith in traditional financial institutions and turn to cryptocurrencies.
Focus has shifted to Ethereum’s Shanghai update as market participants remain indecisive. With the countdown to the update and the Ethereum token unlock event, there has been a surge in demand for the altcoin among retail investors. The Ethereum Shanghai mainnet upgrade is scheduled to happen on April 12, 2023.
Whale data has revealed massive whale activity in the past few days as crypto whales rush to accumulate ETH worth millions ahead of the Shanghai upgrade. The upgrade aims at making Ethereum accessible and scalable by enabling staked Ethereum withdrawals. Data by Glassnode reveals that the number of ETH withdrawals made from crypto exchange platforms has hit a 3-month high.
The Shanghai upgrade is expected to bring significant improvements to the Ethereum network, which could potentially lead to an increase in demand for ETH and a subsequent price increase. The upgrade could potentially make Ethereum a more attractive investment for both institutional and retail investors.
Ethereum Price Analysis
Ethereum price has been range bound for the past few days, trading in the tight range between $1,715 and $1,750. The digital asset has remained above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) remains in the neutral zone, while the Moving Average Convergence Divergence (MACD) indicator remains bullish.
Therefore, the Ethereum price is likely to inch higher as whales continue to scoop up ETH tokens ahead of the upgrade. A move past the resistance level at $1,805.40 might push the price higher to the next resistance levels at $1,900 and $2,000. On the flip side, a flip below the crucial support at $1,685 will invalidate the bullish view.
