Ethereum, the main token of the world’s largest smart contract ecosystem, hit a high of $2,100 for the first time since last May. Ethereum price broke the $2,000 resistance level, also known as Shanghai, after the successful Shapella upgrade on April 13.
Both Bitcoin and Ethereum have continued to outperform investor expectations since the start of the year, especially amid the U.S. banking crisis.
In March, three crypto-friendly banks failed, including Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB). Since then, regulators have stepped up scrutiny, making it difficult for many crypto-based companies to find banking partners.
Ethereum Price Doubles Following Uptrend
Ethereum was trading just above $2,100 on Saturday, largely driven by the Shapella upgrade.A daily close above this level will motivate the bulls to maintain their position in the downtrend
Such a move, coupled with the bullish outlook on the MACD, means that the path of least resistance is to the upside.
ETH/USD daily chart. Source: TradingView
Right now, all eyes are on the $2,200 resistance level, as if its break would push the price of Ethereum to $2,400 or higher.
The hype surrounding the start of the bull market is driving investors into the market. Often, this fear of missing out (FOMO) helps build momentum during bull markets.
Can Ethereum Hit $5,000 by 2023?
Ethereum price is in a good position after a stellar start to the year. This week’s surge above $2,000 confirms the early stages of a potential bull market.
Big brother Bitcoin has surged above $30,000, changing the technical outlook for a possible rally to $38,000 in the coming weeks. Aside from the momentum surrounding the Shapella upgrade, Ethereum price tends to follow in Bitcoin’s footsteps.
Only when more boxes are tested on the market in the coming months will the Ethereum price rise significantly to $5,000. Ether, for example, must hold the new $2,000 support at all costs.
However, there is no guarantee of this even if the Shapella upgrade succeeds, allowing investors who staked ETH to withdraw their tokens and earned rewards for the first time after the network switched to a PoS protocol. .
Whales need to keep their holdings intact to help increase demand for Ethereum. Another important factor to consider is the industry’s regulatory environment.
User Brad Mills posted this line tweet:
“What do ETH insiders and whales do when the price goes up?
They dump coins, like you should, if you haven’t already.
compared to bitcoin, the addresses holding 0.1 BTC continue to grow, and as the price rises, the HODLer base also continues to rise. “
Europe is moving towards establishing a clear regulatory framework, with a vote on the Market for Cryptocurrency Assets (MiCA) expected later this month.
Still, the situation in the U.S. remains bleak, with no hope of a resolution anytime soon. A summary judgment in the SEC-Ripple case in May may provide some clarity, but it may not.
Likewise, the U.S. attitude toward digital assets in 2023 could shape a bull market or prolong a crypto-winter market.
That said, Ethereum prices continue to show bullish strength, with a break above $2,000 likely to mark the start of a sustained rally to $5,000.
- Validators may withdraw 1,400,000 ETH in the next few days
- Bitcoin Breaks $31,000 as ETH Gets ‘Alt Season’ Hopes
According to Crypto News