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With its recent highs fueled by the Shanghai upgrade, Ethereum’s (ETH) price hovers around the $2,100 mark. As of April 17, ETH was trading at $2,070, down from its 90-day high of $2,137 achieved on April 16.
Let’s delve into the current price action, potential market catalysts, and ethereum’s staking environment.
The recent ethereum price rally can be partly attributed to the successful implementation of the Shanghai upgrade, which significantly enhanced the Ethereum blockchain.
You might also like: Everything you need to know about Ethereum’s Shanghai hard fork
With the recently implemented Shanghai upgrade, users could withdraw their staked ETH, making the platform more lucrative.
🖊Since Ethereum's Shanghai hard fork, 1 million ether have been taken out.#Ethereum #ETH #Crypto #shanghai #Million
— Hashd News (@hashd_news) April 17, 2023
🌞source:- https://t.co/aBzU4mEGzK pic.twitter.com/PAA9YuHWZk
Although ethereum’s staking levels are lower than other networks, this may not necessarily be a bad sign. The percentage of ethereum staked represents about 14.3% of the total supply.
As of April 14, ether’s TVL stands at $31.66 billion, an increase of about 40% since the start of the year.
Some experts believe ethereum’s low staking levels are a bullish sign, indicating that the network is focused on maintaining good monetary policy and providing utility to its users.
The impact of the Federal Reserve
Ethereum’s price has been affected by macroeconomic factors such as the US Federal Reserve’s recent statements regarding an additional rate hike in the upcoming May policy rate meeting.
US wage growth has failed to keep pace with rising consumer prices for a record 24 consecutive months. This is a decline in prosperity for the American worker and the primary reason why the Fed is expected to hike rates for the 10th time when it meets again in early May. pic.twitter.com/wgLYZRhrUc
— Charlie Bilello (@charliebilello) April 13, 2023
A stronger US dollar, resulting from potential rate hikes, often negatively impacts riskier assets like cryptocurrencies. Investors seeking stable yields might find the dollar more appealing, potentially affecting the demand for Ethereum in the coming days.
Altcoin season on the horizon
With Ethereum leading the charge for altcoins, market analysts predict the altcoin season is just around the corner.
ALT Season Ahead:
— Hamza (@Itsdehamza) April 14, 2023
Money has started rotating #Bitcoini into #Ethereum. The ETH dominance triangle has been broken out after 216 days. Breakout looks quite violent and is likely to continue north as long as it remains above invalidation. pic.twitter.com/i1lAySiPs5
The performance of Ethereum can potentially positively impact other altcoins, leading to a broader market rally. As the altcoin market gains traction, Ethereum’s success might catalyze other future projects.
Ethereum’s next price target
As Ethereum’s price consolidates around the $2,100 level, the next target may be contingent on several factors. If Ethereum can maintain its bullish momentum and break through the current resistance levels, it might target $2,240.
$ETH bull flag 📈
— Team LAMBO (@TehLamboX) April 16, 2023
✍️ #ethereum on its way towards another breakout, this time should target 2240 when breakout above 2110. The train is not going to stop anytime soon
✍️ #jasmy has made a high at 0.0074$ and so if we breakout from this flag, our beloved coin might also run… pic.twitter.com/vG1okyqMGH
However, if it fails to overcome resistance and macroeconomic factors continue to weigh on the market, we could see a downside correction with support levels at the $2,000 psychological level.
Amid this, CoinCodex expects ETH to maintain its bullish momentum and reach $2,388.49, about 15% higher than its current price levels.
Nevertheless, you should always take price predictions with a grain of salt and conduct your own due diligence before investing in any crypto asset.
Read more: Bitcoin stuck at $30k: what lies ahead