On Friday, Ethereum (ETH) rose 6.98%, to close the day at $1,794. Investor sentiment towards the Shapella upgrade, as well as a simmering crisis in the US banking sector, provided support. Technical indicators remained bullish, with $2,000 in the offing.

Ethereum (ETH) was up 6.98% on Friday. Following a 1.21% gain on Thursday, ETH ended the day at $1,794. Significantly, ETH revisited the $1800 level for the first time since August 2022.

A mixed start to the day saw ETH fall to an early low of $1,666. Breaking away from the first major support level (S1) at $1,645, ETH reached a last-hour high of $1,804 before pulling back. ETH broke above major resistance levels, to close the day at $1,794.

US Banking Sector Woes Drive ETH Stake Flows Higher

There were no further updates from Ethereum developers on the Shapella upgrade, following the All Core Developer Execution Layer (ACDE) call and the announcement of a target date for the Shapella upgrade of April 12. While the developers previously aimed to roll out the update in March, investors weren’t too disappointed with a mid-April update.

Prevailing market conditions raise prospects for a bullish ETH response to the April update. After the update, those interested can withdraw staked ETH from the Beacon Chain, which went live in December 2020.

After the Shapella update, a drop in the total value of ETH staked, as well as an influx of ETH to exchanges, could lead to a bearish ETH response. However, the latest betting input figures suggest an uptrend, as the Federal Reserve tries to contain a US banking crisis.

According to CryptoQuant, staking entries increased on Friday, in response to a return of ETH to $1,800. Stake entries increased, from 18,208 ETH on Thursday, to 22,176 ETH on Friday. Above 20,000 levels should be a bullish sign, considering historical betting entry levels.

However, investors should continue to monitor betting entries and the total value wagered. A sharp drop would signal a change in investor sentiment.

Ethereum (ETH) Price Action – Technical Indicators

ETH rose 1.41% to $1,819. A mixed start to the day saw ETH drop to an initial low of $1,771, before rising to a high of $1,836.

ETH needs to avoid the $1,755 pivot to target the first major resistance level (R1) at $1,843. A move through the morning high of $1,836 would signal a breakout session. However, the Shanghai update news and crypto news wires should be ETH-friendly to support a breakout.

In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1893, and resistance at $1900. The third major resistance level (R3) sits at $2,031.

Ethereum has broken above the 50-day EMA, currently at $1648. The 50-day EMA has broken further away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, providing bullish signals.

A hold above S1 ($1,705) and the 50-day EMA ($1,648) would support a break of R1 ($1,843) to the target of R2 ($1,893) and $1,900. However, a drop-through S1 ($1,706) would give bears a run at the 50-day ($1,648) and 100-day EMAs ($1,618), and S2 ($1,617). A drop through the 50-day EMA would send a bearish signal.

By Audy Castaneda


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