April 20 Technical Analysis: Ether (ETH) on Critical Support?

The second-largest crypto suffered a steep descent on Wednesday, closing the session below $2,000. Ether (ETH) finds itself at critical support as volatility descends on the market after Shanghai. Will this support hold?

Ether (ETH) experiences volatility after Shanghai

After the Shanghai upgrade, ETH saw a strong bullish impulse before falling 7% yesterday. This volatility is due to the number of large withdrawals and deposits of the millions of unlocked ETH. Many investors were expecting this update to cause a significant drop with the possibility of ether (ETH) stake withdrawals. However, the upgrade had a positive impact on the price of ETH, with the massive increase in ETH deposits on exchanges. On April 16, it broke above $2138, its highest level since May 2022.

Ether critical support
Ether (ETH) candlestick chart, daily scale – source: TradingView

With yesterday’s drop, ether (ETH) is back at critical support around $1950. On the daily chart, we actually see the presence of two oblique supports. If these two lines fail to maintain the bearish pressure, we can expect a descent on the support of $1822. Which is likely, as the short-term price structure suggests a weekly close in the red. But with the success of the Shanghai upgrade, user confidence in Ether (ETH) may increase. Thus, the price could rise further on a long-term perspective, even if a correction seems imminent on the short-term.

Will the current support level hold?

With the current high volatility, it is likely that the price will break the two current oblique supports. In this case, the next support that could hold downside pressure is found at $1822. This is the opening price for the month of April. If ether (ETH) makes a monthly close in the red, we could see a correction towards $1600. In the case of a bullish scenario, a rise towards $2400 is possible if ETH closes the month above $2138.

Ether critical support
Ether (ETH) candlestick chart, H2 scale – source: TradingView

However, with the short-term bearish structure, a short position could be attractive. For this, the $2051 and $2086 area is an interesting entry point. If this bearish thesis is confirmed, ether (ETH) could drop to $1822.

Admission: $2051;

Stop: $2150;

Goal 1: $1822;

Goal 2: $1600.

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