Ethereum Price Prediction as ETH Falls Below $1,800 – Time to Buy the Dip?
The token powering the largest smart contracts platform, Ethereum is consolidating on Friday while holding support at $1,800 ahead of the release of key economic data.Ethereum price slowed down its aggressive push witnessed in March in tandem with the largest crypto asset, Bitcoin on reaching resistance at $1,850.
With the weekend session just hours away, ETH is trading at $1,807 and depicting remarkable composure.We have the Personal Consumption Expenditures (PCE) data coming out on Friday, which market watchers expect could cause some volatility, especially ahead of the US stocks opening.
The PCE is a key inflation indicator utilized by the Federal Reserve to make key monetary policy decisions.
Is Ethereum Ready To Take Down Pivotal $2,000 Resistance?
Ethereum price remains barely unchanged in 24 hours, although
Bitcoin has lost nearly 2% of its value to trade at $28,230 at the time of writing.If support at $1,800 holds in spite of the PCE data, ETH price could strengthen its bullish outlook over the weekend and grind closer to the psychological resistance at $2,000.
The second-largest token in the market holds above all the applied major moving averages, starting with the 100-day Exponential Moving Average (EMA) (line in blue), which has just flipped above the 200-day EMA (line in purple)—in a move that could validate the anticipated climb to $2,000.
The 50-day EMA (line in red) at $1,665 is in line to help mitigate the selling pressure in the event of a reversal below $1,700.On the same daily chart, the position of the Moving Average Convergence Divergence (MACD) suggests the path with the least resistance is now to the upside.
Although the MACD is yet to validate a buy signal on the daily timeframe chart, its position above the mean line implies a bullish outcome is highly likely.
On the four-hour timeframe,
Ethereum price has printed a bullish engulfing candle, targeting short-term resistance at $1,850.Similar to the daily chart, ETH sits above all the major applied moving averages – the 50 EMA, 100-day EMA, and 200-day EMA.
The On-Balance-Volume (OBV) indicator, which underlays the chart like the Relative Strength Index (RSI), while tracking the volume reinforces the bullish grip on Ether as it rebounds.
Therefore, with inflow volume surpassing outflow volume, Ethereum has enough momentum to deal with resistance at $1,850.
Holding above $1,800 on Thursday, assured investors Ethereum price is in an uptrend and is not ready to falter.
That said, the next and most important affirmation investors need is a break and hold above $1,850 to bring the subsequent hurdle at $2,000 within reach.If push comes to shove and Ethereum bows to the seller congestion at $1,850, a retreat to $1,800 would provide fresh liquidity for another stronger rally to $2,000.
The Ethereum Shanghai Upgrade Is Happening
The Ethereum Foundation confirmed the Shanghai upgrade earlier in the week around mid-April.It is the second most important hard fork since the Merge in September, particularly among investors who locked ETH tokens in the Beacon Chain Smart Contract.
Recently baptized Shapella, the Shanghai upgrade will see Ethereum unlock its full potential as a proof-of-stake (PoS) consensus protocol, as validators will for the first time withdraw from the staking contracts.
“There is much speculation about what the Shanghai hard fork will mean for the price action of ETH and related liquid staking derivatives (LSDs) such as Lido (LDO) and Rocket Pool (RPL).So far we have seen large appreciations in the price for LSDs and related protocols,” Bill Xing, head of financial products at Bybit said in an exclusive
commentary to Crypto News.
Xing, like many experts in the market, expects the volatility being experienced to “continue leading up to and around the time the Shanghai upgrade is enacted, similar to the situation that unfolded around the time of The Merge in September 2022,” he added.
Ethereum has been one of the biggest bullish contenders in the last few weeks.
Unlike other altcoins, ETH has rallied alongside Bitcoin, allowing investors to hedge against the
banking crisis in the US.
“We expect it to continue to play an important role going forward, primarily if it can deliver what is promised on its roadmap,” Xing said as he concluded his statement.
However, the biggest challenge
Ethereum price faces at the moment is the risk associated with regulatory uncertainty in the US.If ETH can ignore the ‘noise’ it could ease into a substantial rally in 2023.
Related Articles:
Best Crypto to Buy Now 30 March – CFX, ALGO, RNDR Bitcoin Price Prediction as BTC Jumps Up $1,000 – Where is the Next BTC Target? Best Crypto to Buy Now – CFX, MASK, OP.
