The second crypto by market capitalization outperforms bitcoin (BTC) this week. She records more gains than the queen of cryptos and clears a hurdle since March. Ether (ETH) may come up against the $2000 resistance as the Shanghai update looms.
Ether (ETH) approaching a correction?
This week, the second-largest crypto by capitalization outperforms bitcoin (BTC) in market performance. In fact, it recorded a gain of more than 9.5% from Monday’s low to Wednesday’s peak. At the time of writing, ETH is trading slightly below $1900. This rise could continue for ETH. However, the $2000 resistance could trigger a new phase of correction for Ether (ETH). On its graph, we can see that it reproduces roughly the same movements that we had explained in this analysis. Thus, a drop below the $1600 territory is possible for this cryptocurrency.
Then, the Shanghai update should cause volatility on the price of ETH. Scheduled for April 12, this update will allow the withdrawal of Ethereum staked, blocked on the Beacon Chain. It could bring a sales pressure important on ether (ETH) due to massive withdrawals of ETH tokens. Indeed, these staked ETH have remained stuck on the Beacon Chain since December 2020. Once withdrawals are possible thanks to Shapella, validators will rush to liquidate their tokens. A drop in the price of ether (ETH) is then very likely.
Weekly closing in the green?
Since Tuesday, the eternal second has experienced an explosive increase. This rise in ether (ETH) could continue up to the $2000 hurdle. This still represents an increase of 7% compared to the current price. Thus, a weekly close in the green is possible for ETH. In this case, one could consider a buy position up to the 2000 dollar hurdle.
The $1845 level could be an interesting entry point. This is a micro-support that lines up with half of Tuesday’s range. We therefore envisage a rebound towards $2000 from this level. If Ether (ETH) breaks through Tuesday’s low ($1800), this bullish thesis will not be valid.
Admission: $1845;
Stop: $1795;
Goal: $2029.
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