Ethereum (ETH) price is breaking above a key horizontal resistance. Doing so would also lead to a break above the long-term descending resistance line.
While there is no direct word on the Ethereum Shanghai upgrade, the fork is expected to launch in April. The Shanghai upgrade is the first major update of the Ethereum blockchain after Ethereum 2.0. In addition to unlocking the ETH pledged indefinitely on the beacon chain, the upgrade will also introduce other improvements to Ethereum, such as reducing the ETH on the Ethereum network. Transaction fees and transaction size.
However, the upgrade will not introduce any new content regarding smart contract functionality or decentralized applications.It is worth mentioning that since The Merge event, Ethereum’s deflation rate has increased significantly and the supply has decreased 63,000 ETH so far.
Ethereum (ETH) Reaches Important Long-Term Level
Technical analysis on the weekly time frame offers a bullish outlook for ETH. The main reason is the reaction to the $1,400 level area. This area has reached all-time highs since 2018 and is respected even though the price fell below it twice in 2022 (red circle).
A 2023 bull move helped Ethereum break out of this area and confirm it as support last week (green icon). Also, the weekly RSI has broken the descending resistance line and is above 50. This is considered a bullish signal.
Although ETH price has been moving along a descending resistance line since its all-time high, RSI breakouts usually precede price breakouts. Therefore, ETH price is poised to break above the long-term descending resistance line.
If it does, it could rally to the next resistance at $2,000. On the other hand, a rejection of the line could lead to a retest of the $1,400 area.
Weekly ETH/USDT Chart | Source: TradingView
Is Ethereum (ETH) Price Exploding?
The daily time frame supports the possibility of a breakout. It shows that ETH price bounced off the support line of the previous ascending parallel channel (green icon) and started the current uptrend.
Currently, the price is breaking the $1,680 resistance area. Such a move would also result in a break above the long-term descending resistance line. Therefore, the Ethereum price could go as high as $2,000.
The daily RSI breakout (green line) supports this possibility, thus providing a bullish forecast for Ethereum.
On the other hand, if the price is rejected, it can move back to the $1,400 support area.
ETH/USDT daily chart | Source: TradingView
In conclusion, the most likely Ethereum price prediction is a break above the current confluence of resistance levels and a rally towards $2,000. Failure to break through would invalidate this bullish outlook and could lead to a drop to $1,400.
You can see the token price here.
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