Ethereum price weekend rally seems unstoppable, with $2,000 now in sight. The largest smart contracts token’s value increased 7.5% in 24 hours to $1,150, with the weekly cumulative gains growing to 20%. If ETH holds above $1,500 throughout the weekend, it could start the new week above $1,600, heading toward $2,000.
Is Ethereum Ready To Blast To $3,000 With the Shanghai Upgrade?
Investors, especially those with ETH tokens bound in the Beacon Chain contract, are raving about the impending Ethereum Shanghai software upgrade. The most interesting feature of this upgrade is that it will enable stakers to withdraw the Ether locked in the ETH 2.0 smart contract for the first time.
Nearly 16 million ETH, worth slightly over $24 billion, are staked on the Beacon Chain, according to the Open Source Ethereum Explorer. Seven validators are awaiting approval, but the chain has around 499,000 validators.
While some analysts fear that releasing the huge quantity of ETH tokens locked in the Beacon chain may increase selling pressure, it may have the opposite effect, encouraging more investors to stake their holdings and earn annualized rewards.
Insight from an article published on the Binance Feed site reckoned that “a closer look at the on-chain numbers crunched by Lookonchian reveals that the average price of accounts that deposited less than 5,000 ETH is actually higher than the current price.”
The average price at the time of deposit for investors who staked less than 5,000 ETH was $2,260. Even if this does not imply that this investor tier won’t sell their Ether, they will likely choose to HODL.
Developers are not likely to permit all withdrawals simultaneously due to the possible risk that might have on the chain. In addition, previous communications have insisted that withdrawals would be released over time. Ethereum may blast above $2,000 and reach out for $3,000, respectively, in the weeks leading to the Shanghai upgrade.
Ethereum Price Short-term Outlook Needs The 200-Day EMA
There is a high chance investors will start booking early profits if Ethereum fails to hold above $1,500 throughout the weekend. Support at the 200-day Exponential Moving Average (EMA) (in purple) at $1,503 must be defended by the bulls at all costs to ensure investor interest in the second-largest crypto stays positive. Otherwise, selling pressure might soar as investors liquidate their positions. Market data shows a spike in liquidated crypto volume even as the rally extends.
The position of the Moving Average Convergence Divergence (MACD) indicator above the mean line strengthens the bullish grip on Ethereum price. Moreover, investors might be buying more ETH following a buy signal that manifested as the MACD (line in blue) crossed above the signal line (in red).
According to analysts under the pseudonymous Twitter account, Rekt Capital, Ethereum price “maybe attempting a breakout past a multi-month resistance” around $2,275. Still, even so, previous attempts have only made it above the falling trendline, as illustrated on the chart below in candle wicks.
For Ethereum price to make a successful bullish move to $3,000, “it needs to retest this resistance as support.”
(1) Rekt Capital on Twitter: “Though $ETH may be attempting a breakout past multi-month resistance (black)… It’s key to note that previous fakeouts in recent months have ended up as upside wicks beyond the diagonal resistance #ETH needs to retest this resistance as support to breakout #Crypto #Ethereum https://t.co/wxARwbICxD” / Twitter
On-chain data from Santiment has revealed that more whale and shark addresses are scooping up ETH tokens as the price rallies. “Over the past 10 weeks, ~3,000 new shark addresses (holding 100 to 10,000 $ETH) have shown up on the network,” Santiment wrote on Friday. The highest number of shark addresses recorded since February 2021 is 48,556.
The bullish outlook for Ethereum price could remain in place as long as demand for ETH rises. Moreover, as the price recovers, more and more buyers join the market amid growing confidence in the crypto market after the implosion of Sam Bankman-Fried’s FTX exchange.
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