The next hard fork of the Ethereum network, “Shanghai”, is scheduled for March 2023. The market was quick to react to this news. After a slight compression move, Ether (ETH) jumped 5% yesterday. The price is thus approaching a short-term obstacle.
The boost of positive news
Yesterday’s sharp rise was no doubt due to the publication of the positive news. Indeed, the developers of Ethereum have planned, yesterday, that Shanghai will be released in March 2023. This is the next hard fork of the network which will include an EIP code 4895. This new update will allow the withdrawal of ETH tokens “staked but locked to ETH’s Beacon Chain. Thus, the value of ether (ETH) in the market rose sharply by 5%. This occurs after a squeezing motion.
Currently, the price of Ether (ETH) is near short-term resistance. This is the $1300 area. However, this obstacle has already been hit three times, which makes it vulnerable. Additionally, yesterday’s bullish impulse originated at the $1229 support. Supported by a divergence on the RSI, this support has played its role well. From there, investors should expect more upside for the final month of the year.
The probable scenarios on ether (ETH)
Since mid-November, Ethereum has surged 19% from the $1080 support. Its price is thus in an upward trend. Therefore, it would be wiser to consider short-term bullish scenarios. This, since the long-term structure of the price remains bearish, despite the effort of the bulls. Additionally, it should be noted that the price of ether (ETH) is currently moving in a bullish trending channel.
Yesterday’s bullish rally was the result of several parameters, not counting “shanghai”. Indeed, the price of ether (ETH) has started a correction since the beginning of December. Which explains the return of the price to the support of $1229. This is indeed the 50% level of the Fibonacci retracement tool. After this retracement, we can envisage a short-term bullish rally towards 161.8%. This target is on the psychological zone of $1400.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
