Ethereum’s price has been on a bullish run lately, surpassing the key resistance level of $2,000 after the successful completion of the Shanghai upgrade. As of the time of writing, ETH is trading at $2,052.19, up by 10% since the Wednesday upgrade, and has a year-to-date price increase of 72%. Moreover, the altcoin’s market cap has risen to $247.8 billion, up by almost 3% in the past 24 hours, while its trading volume has increased by 17%.
The Shapella upgrade had been a cause for concern among investors, given its potential to induce selling pressure on the altcoin after its launch. However, its successful completion has led to a positive sentiment in the market, driving ETH’s price higher. Among the enhancements included in the upgrade are improved security, reduced gas fees, and ETH validator withdrawal.
Another factor boosting Ethereum’s price has been the recent decline in US inflation data, which has raised hopes of the Federal Reserve ending its interest rate hike cycle. A lower interest rate environment typically boosts liquidity in cryptocurrencies, driving their prices higher. The global crypto market has also climbed to $1.26 trillion in the past 24 hours, while its total volume has risen by 25.71%.
The US dollars’ performance has been declining since the latest CPI reading and amid rumors of a dovish Fed. Additionally, the US PPI fell by the most in almost three years in March, while the US Treasury yields climbed, despite earlier positive economic data releases.
From a technical analysis perspective, Ethereum’s price has continued to move higher, with the altcoin flipping the key resistance level at $2,000. Its RSI (Relative Strength Index) has moved higher into the overbought zone, and its MACD indicator remains bullish. Furthermore, ETH has remained above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages.
Looking ahead, buyers are eyeing the next resistance level at $2,478, and we may see further gains for Ethereum’s price. However, if the cryptocurrency’s price drops below the crucial support level of $1,900, it could invalidate the bullish thesis.
In conclusion, Ethereum’s price has been on an upward trend, boosted by the successful completion of the Shanghai upgrade and the decline in US inflation data. The altcoin’s technical indicators suggest that it may continue to push higher, with buyers looking toward the next resistance level at $2,478. Nonetheless, we should keep an eye on the crucial support level at $1,900, as a drop below it could signal a longer-term bearish trend.
