Key Ethereum Levels to Watch as ETH Price Pivots $2,100
Midway through last week and following the successful implementation of the Shanghai and Capella upgrades to the Ethereum blockchain, the price of Ether (ETH) broke convincingly above the $2,000 level for the first time since May 2022.
Ether, the crypto token that powers the smart-contract-enabled Ethereum blockchain, has since been consolidating either side of the $2,100 level, with gains on the year currently around the 73% mark.
Naturally, after Ether’s latest push higher above the key psychological $2,000 mark and long-term resistance around $2,030, traders are asking where next for the world’s second most valuable cryptocurrency by market capitalization.
Continued consolidation over the next few days and weeks is a distinct likelihood given a lack of major macro and Ethereum-specific fundamental catalysts to drive the price action.
With the “Shapella” upgrade now out of the way, attention now turns to 1) watching on-chain ETH token staking trends and 2) on when Ethereum developers will implement the next round of major upgrades to the blockchain.
For reference, the latest series of Ethereum upgrades unlocked staked ETH token withdrawals for the first time since staking was enabled on the Beacon chain back in December 2020.
Meanwhile, the next major macro events that could really shift narratives about the outlook for US economic growth and Fed tightening policy come next Wednesday (Q1 GDP) and Friday (March Core PCE Inflation).
A steady crawl higher in the ETH price is certainly possible, but the risk of further profit-taking activity remains high, with ETH’s 14-Day Relative Strength Index (RSI) having recently crossed into overbought territory.
To the upside, traders will be monitoring how the ETH price responds to
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