Ethereum price is down 1.5% over the past 24-hours to $1,663 as the market is down 0.5% over the same time frame.
Despite today’s losses, ETH is up 8% over the past week and 10% over the past 30 days, with the largest altcoin in crypto also up 39% since the start of 2023.
And even though Ethereum declined amid market concerns over the global banking system, it held its $1,600 support level firmly, providing it with a good foundation for further gains to come.
so does the one who comes shanghai upgradeWhich will enable staking withdrawals once it goes live in mid-April, effectively de-risking retail and institutional investors alike.
Bulls Hold $1,600 Level As Ethereum Price Prediction – Where Is ETH Now?
Looking at the condition of its key technical indicators, the chart of ETH is still looking quite bullish.
Its Relative Strength Index (purple) has jumped to 60 in the past few days from over 30 earlier this month.
Similarly, ETH’s 30-day moving average (red) has started an upward move again, putting more distance between it and the coin’s 200-day average (blue), signaling further gains.
It would be an encouraging sign if ETH could rise decisively above $1,700 and stay there, suggesting that the threat of further losses has been averted.
Of course, with Credit Suisse still in a difficult position (even with a loan from the Swiss central bank), there remains the risk of further shocks to the European and global financial system.
And if more shocks occur, crypto – along with ETH – could take a further beating, even though the rally earlier this week may suggest that the market is insulated from fears over the stability of banks.
Assuming conditions stabilize from here, Ethereum is well set up for some gains, especially over the next month.
This is when the Shanghai update is about to roll out, with the upgrade already running on the Goerly testnet.
As we’ve written before, Shanghai Stake will enable withdrawals of ETH, and while some has argued that the update will result in increased selling pressureIt is likely that the negative impact of the upgrade will be relatively small.
This is because withdrawals of staked ETH cannot happen in one go, plus the developers set a daily limit on how many validators can withdraw 32 ETH per day (The limit is currently at 1,800,
Because of this, Shanghai is far more positive than negative for Ethereum.
This is largely because It minimizes the risk to the usersThis will encourage many people to stake ETH, safe in the knowledge that they will be able to un-stake at any time.
Shanghai will also provide some of the technical foundation for future Ethereum upgrades, including sharding, which will enable parts of the Ethereum blockchain to process separate batches of transactions in parallel.
Thus, Shanghai is more likely to boost the ETH price than drag it down.
At the same time, it is worth remembering that ETH has been deflationary ever since last year brought us the Merge and EIP 1559, which means it often burns more than ETH (especially during peak periods).
Other bullish news for Ethereum is that Coinbase continues to support the network.
Not only did the exchange announce this last month It’s Launching Its Own Layer-Two Sidechain for Ethereum (called Base), but it also revealed that it will begin processing staking requests within 24 hours of going live on the Shanghai blockchain’s mainnet.
Coinbase’s support for Ethereum comes in addition to Visa, which arrived in February Turns Out It’s Testing USDC Stablecoin Payments on the Ethereum Blockchain,
While this is only a test, it highlights that Ethereum is likely to be the main winner in the broader crypto ecosystem’s efforts to attract mainstream and enterprise adoption.
This makes the future extremely bright for ETH, with the coin likely to rise to $2,000 in the next few months, assuming the current banking crisis does not develop into a full-blown financial crisis.
From there, it could easily look to new highs in 2024, helped by a renewed bullish momentum triggered by the next bitcoin halving.