Ethereum price has been hovering above the crucial $2,000 level for the past two days off the back of the successful Shanghai upgrade and the overall bullish sentiment in the crypto market. Ethereum, the largest altcoin by market cap has jumped by more than 10% since its upgrade on Wednesday, raising its year-to-date price to 72%.
Ethereum price built on its post-Shapella upgrade on Friday as investors felt relieved following the successful Ethereum upgrade without potential negative effects. ETH’s price briefly climbed to $2,128.76 earlier on Friday, its highest level since May 16, 2022. The altcoin’s total market cap has inched nearly 3% higher to $247.8 billion over the past day, while the total volume of ETH traded increased by 17%.
The Ethereum network completed its long-awaited Shanghai upgrade on Thursday morning, pumping Ether’s price higher. The upgrade was intended to introduce new enhancements such as ETH validator withdrawal, improved security, and reduced gas fees. Many were initially concerned that the Shapella upgrade would pump selling pressure after the launch. Shanghai is the second-largest developmental upgrade on the Ethereum blockchain after last year’s Merge.
Ethereum has also been thriving on the decline in the latest US inflation data that has raised hopes of the Federal Reserve putting a pause or ending its interest rate hike cycle. Lower interest rates tend to pump liquidity into cryptocurrencies, raising their prices higher. The global crypto market has moved higher to $1.26 trillion in the past 24 hours, while the total crypto market volume rose by 25.71%.
The dollar index, which measures the performance of the US currency against six others has been falling following the latest US CPI reading and rumors about a dovish Fed. Data released on Thursday shows that the US Producer Price Index (PPI) fell by the most in almost three years in March. The US Treasury yields climbed on Thursday despite the positive economic data released earlier this week.
Ethereum price has been flashing green for the past few days, flipping the important resistance level at $2,000. At the time of writing, ETH was trading 2% higher at $2,052.19. On the daily chart, ETH has remained above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has moved higher into the overbought zone, while the MACD indicator remains bullish.
Therefore, I expect the Ethereum price to continue moving higher as buyers eye the next resistance level at $2,478. However, a move below the crucial support level at $1,900 will invalidate my bullish thesis.