Ethereum’s Shanghai upgrade is expected to launch later today. What to expect for crypto traders?
Ether (ETH) at its highest level
The second crypto by capitalization is at its highest level since September 2022. Recall that the Merge was launched on the 15th of this month, and the value of this crypto suffered a drop of 25% after this launch. At the time of writing, it is trading around $1868 after hitting $1940 on April 10. Will this Ethereum rise continue as the Shanghai upgrade is scheduled for later today? Looking at the macro structure of the price, yes, it could be that ETH hits the $2000 hurdle. However, a correction is also possible.
Indeed, this upgrade will likely have a lot more impact on the market than the Merge. Indeed, it will allow validators to withdraw their staked ETH (stETH), blocked to date on the “Beacon Chain”. We could then expect massive withdrawals from validators. This is potentially over $2.4 billion worth of selling pressure on ether (ETH). Added to this are technical signals such as the RSI divergence on the daily scale. High volatility followed by a correction is then possible for ETH.
A potential correction towards $1600?
Looking at the H2 scale chart, we can see that Tuesday’s high forms a double top with the April 05 high. Then, ether (ETH) broke through the weekend range during Monday’s session. After hitting yesterday’s high, the price takes a drop of more than 2%. One could then consider that Tuesday’s high ($1929) will be the high of the week. If this is the case, a weekly close in the red will be possible.
But before that, the price might bounce slightly off the slanting support since March, to retrace back to $1900. This will be an ideal entry point for a short position. If Ether (ETH) clears Tuesday’s high ($1929), a move higher towards the $2000 hurdle can be expected.
Admission: $1900;
Stop: $1935;
Goal 1: $1884;
Goal 2: $1600.
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