Ethereum has secured a multi-month high ahead of the Shanghai upgrade, rising close to 3% in the last 24 hours. Following a week-long bullish run, Ethereum’s price has reached an eight-month high, hovering just below the $2,000 mark.
The surge can be attributed to the upcoming Shanghai hard fork upgrade, set to launch on April 12. The upgrade will primarily allow validators to withdraw staked coins, increasing liquidity and boosting demand.
This has led to a significant increase in buyers’ activity in the market, positively affecting demand and accumulation. While major altcoins are also extending gains with Bitcoin, Ethereum needs to break above the crucial $2,000 level to sustain its rally.
However, a correction now could threaten ETH’s positive momentum and cause it to fall below the current support level. The market capitalization of Ethereum also appreciated suggesting an increase in demand.
Ethereum Price Analysis: One-Day Chart
At the time of writing, Ethereum was trading at $1,910. The bulls successfully broke through a crucial price resistance level of $1,860, which has now become a support level for the altcoin.
The overhead price ceiling for ETH was set at $1,930. If breached, the altcoin could attempt to revisit the $1,970 price mark. However, it is important to note that this level can act as a strong price ceiling for the altcoin but if broken, Ethereum could soar above $2,000.
On the other hand, the first support level for the coin is currently at $1,860. In the event of a price correction, Ethereum will drop to $1,860. In case ETH fails to maintain that level, it could plunge to $1,840. The amount of ETH traded in the last session was green, displaying the presence of buyers at the time of writing.
Buyers began to show confidence in the price movement as ETH attempted to approach $2,000. This was demonstrated by the Relative Strength Index climbing above the 60-mark. The reading indicated that buyers held a firm grip on the asset in the market.
Additionally, the price of ETH rose above the 20-Simple Moving Average line, reflecting a significant surge in demand and indicating that buyers were driving the price momentum in the market.
If ETH manages to breach the next two critical resistance levels, it is expected to experience another price surge, which will further drive up demand for the asset.
As demand for Ethereum surged on the chart, buy signals began to emerge for the altcoin. The Moving Average Convergence Divergence, which measures price momentum and reversals, turned green, indicating buy signals for the asset.
Furthermore, the Directional Movement was positive, indicating that the price was moving in a bullish direction, with the +DI line (blue) situated above the -DI line (orange). The Average Directional Index also rose above the 20-mark, implying that the price trend was gaining strength.
Featured Image From UnSplash, Charts From TradingView.com