Ethereum Recovering; Shanghai Fork to pave path for 2023

Ethereum Shanghai Upgrade scheduled for the second half of 2023.
Prices to face the bulls in the coming year.
Second biggest crypto coin values at about $1600.

After an extended bear vacation, the crypto market is indicating a relief rally, where the major cryptocurrencies have surged in double digits. Ethereum, the second most influential coin, has recovered by more than 50%, valued at about $1600, at press time.

The Shanghai hard fork is one of the anticipated upgrades in the network, which is scheduled to roll out by March and continue till the end day. In the latest meeting of developers, they proposed eight Ethereum Improvement Proposals (EIPs) be included in the Ethereum Shanghai Upgrade.

The EIPs are predicted to target a few specific segments to improve the functionality of the Ethereum ecosystem. One of the biggest things that are expected to occur is a reduction of gas fees for layer-2 solutions running on top of Ethereum. It may also impact the withdrawal of staked ETH tokens, update the smart contract facilities, and several other upgrades yet to be disclosed.

ETH Price for 2023

The price for ETH has moved in a downward momentum for the major part of 2022. It has tested the support zone near $1050 from time to time. A similar image is casted by the volume, where the bars recorded are descending. A sideways movement for the second half of 2022 and continuing resistance suggest prices may witness a rally near the Shanghai Upgrade.

MACD has recorded a stable buying action, where the investors purchased the dip to enjoy the future rocket. The RSI shows recovery from seller control and hints at reaching the ceiling ranges. Selling orders were recorded near $3500 and $4600. If the prices reacted positively to the Shanghai hard fork, a bull run can be established and can target $5000.

What does investing in ETH now mean?

If, say, an investor invests $10000 in ETH at current trading prices of $1600, his wallet will hold 6.25 ETH. After the successful execution on the hard fork, if prices reach $5000, these tokens will be worth $31,250. The ROI on this investment will amount to 212.50%. This makes it suitable for the for both short-term and long-term investments.

Conclusion

The scheduled hard fork will amplify the impact that was predicted from the merger. The ETH prices may encounter dominating bulls after the successful execution of the Shanghai Upgrade.

Technical levels

Support level: $1050

Resistance levels: $4600 and $3500

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing