Ethereum has been below a critical resistance level for over 13 days. So far, the price has not broken this barrier.
That is what we are drawing attention to today. It is a diagonal line on the weekly chart where the price has moved down from the high point. This is currently one of the most important resistance levels.
In addition, we discuss the possible impact of the upcoming Shanghai update on the Ethereum price. This update will pull back a lot of Ethereum and I think investors will probably start making profits. This can have a negative impact on the price.
Finally, let’s look at the Ethereum/Bitcoin rating, which has clearly been manipulated.
This is the main resistance for Ethereum
The weekly chart below shows the price of Ethereum. Each candle represents a period of one week. From the top, the price fell sharply, but there were also bullish moments. This clearly created diagonal drag.
Resistance is crucial as it can determine the price direction for the coming weeks or months. If resistance is broken, Ethereum could break well above $2,000.
If resistance is not broken, there is a good chance that the price of ethereum will drop to $1400 or even lower. In other words, it’s make or break.
Which price levels are important?
When the price moves above the red resistance line, it is important that the weekly candle closes above this line to confirm that the resistance has indeed been broken and not a fake.
After that break, I’ll look first at the $2,000 price level, where the price will encounter resistance, but with enough buyers it’s certainly not an impossible task to break out. With strong momentum, it could even reach the $2,500 mark, which is also an important price point for the second largest cryptocurrency.
If resistance remains too high, there is a risk of a downtrend. It is important that the price remains at least above the green support line. If we miss this line, we can first expect support around the $1,150 price level and, in extreme cases, near the bottom around $880.
Whether such a decline actually occurs will also depend on the movements of bitcoin. But the upcoming Shanghai update could also play a big part in that…
The aftermath of the Shanghai update
As you may know, the Shanghai update will be released on April 12 on the Ethereum network. With this update, investors who have staked their Ethereum will be able to claim their rewards and potentially stop staking.
Many investors are expected to benefit as the price of Ethereum has risen sharply since the exercise option was launched and many may now want to take profits. As a result, the price of Ethereum could fall significantly.
The impact on Ethereum/Bitcoin valuation
As mentioned earlier, Ethereum price movements are partially dependent on Bitcoin movements. However, the Shanghai update is separate from this, and so it is possible that Ethereum price will move slightly looser than Bitcoin around this update.
It is important to keep an eye on Ethereum/Bitcoin valuation. This chart shows how much bitcoin it takes to buy one ETH. It is impressive that this chart is clearly manipulated.
The chart above is clear: the price of Ethereum/Bitcoin seems to follow a pattern in recent months that indicates manipulation and predicts a bearish price target. Does this mean Ethereum is about to crash? Not necessary.
However, this does mean that Ethereum is likely to weaken against Bitcoin in the coming weeks if the manipulation continues. The Shanghai update could play a role in this if many investors actually decide to sell Ethereum.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
