FX.co ★ Technical Analysis of ETH/USD for April 14, 2023

Crypto Industry News:

What the Ethereum community has been waiting for a long time has happened, i.e. the Shapell hard fork. On April 12 at 22:27 UTC, the blockchain went through a seamless update that allows staked ether withdrawals from the Beacon Chain. This is not the end of good news, because the ETH rate broke the level of $ 2,000 today.

Ethereum developers can breathe a sigh of relief, as the update of this network, which has been prepared for many months, has been successfully completed. As such, investors who have their ethers locked in the Beacon Chain staking pool can withdraw them. Many people in the cryptocurrency community debated whether the hard fork would immediately flood the market with ethers, which would have a negative impact on its price.

As you can see, the situation is completely opposite, because the day after this event, the ETH rate broke the level of $ 2,000 for the first time since August. At the time of writing, the price of ether has undergone a really slight correction and is now the second largest cryptocurrency by marketcap trading at $1,996. This means that the value of this asset jumped by 4.15% during the day, and it gains by 6.25% during the week. Moreover, ether is 20.7% more expensive than a month ago. Summarizing this issue, ether is currently at its most expensive since the beginning of 2023.

Technical Market Outlook:

The Shanghai update is done and the ETH/USD pair has broken above the level of $2,000 with a new yearly high being made at the level of $2,129 (at a time of writing the article). The next target for bulls is seen at the level of $2,151. The strong and positive momentum on the H4 time frame chart support the short-term bullish outlook for Ethereum, however, the market conditions are extremely overbought on H4 and Daily time frame charts. The level of $1,858, $1,845 and $1,832 will now act as the support for bulls, so please pay attention to this level during the local pull-back.

Weekly Pivot Points:

WR3 - $2,078

WR2 - $1,988

WR1 - $1,955

Weekly Pivot - $1,898

WS1 - $1,862

WS2 - $1,809

WS3 - $1,719

Trading Outlook:

The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.