The crypto market is in green again, after more than a week of lethargy.
Just like it was in mid-March, Bitocin has gotten back on track and is aiming for another retest of the $29,000 – $30,000 resistance.
However, while Bitcoin led the charge earlier, gaining more than 20% in its rise from below $20,000 to the $29,000 zone, ETH is leading the charge this time around.
According to data from CoinMarketCap, Bitcoin and several other cryptocurrencies on the market have been significantly bullish today, and over the last week.
Bitcoin, in particular, has risen by 5% over the last week, and by less than 1% over the last day.
Ethereum, on the other hand, is the star of the party. $ETH has risen by an impressive 8% over the last week and is significantly bullish. Bitcoin's sister cryptocurrency has moved by 3.4% to the upside over the last 24 hours.
What is going on? Why is Ethereum significantly more bullish than every other cryptocurrency on the market, and what might the market have in store for $ETH?
Why is Ethereum significantly more bullish than other cryptocurrencies on the market?
The answer might lie in the upcoming Shanghai update, expected to hit the Ethereum mainnet at epoch 194,048, which is scheduled for 10:27 pm UTC on April 12.
After being successfully tested on the Goerli testnet, the Ethereum Shanghai hard fork (also known as the Shapella upgrade) will allow the network's users to withdraw their staked assets for the very first time.
For context, the network's users have been staking ETH for two years now, since the launch of the Beacon chain, two years ago.
The question is: Is the Shanghai update a good thing for Ethereum investors?
Yes and no.
At the time of writing, more than 17 million $ETH is currently staked in the beacon chain.
This means that if Ethereum's current price is $1,800, the Beacon chain holds approximately $30,600,000,000 (or 30.6 billion dollars) worth of ETH.
When the Shanghai update hits the mainnet, the effect of tens of billions of dollars being released incrementally on the price of Ethereum is anybody's guess.
While the hard fork will permit both partial and complete withdrawals, however, the developers in charge of the network have assured its users that numerous safeguards have been put in place to prevent the market from being overrun with $ETH.
The news of the upcoming update on the Ethereum network appears to have had a hand in $ETH's bullishness over the past week.
According to CoinMarketCap, the cryptocurrency appears to be getting stronger over time.
After starting the trading day at a low of $1,771, the cryptocurrency rallied about 4% to the upside, hitting a $1,886 high and stopping a hair length short from the $1,900 mark.
At the time of writing, the cryptocurrency is hovering at the $1,875 mark and is currently leading the rest of the top 10 cryptocurrencies on the market.
On the charts, the cryptocurrency has managed to keep itself above its 20-day Exponential Moving Average (red line), which is a good sign.
This means that the bulls are still in control, and the scalpers are still buying the minor dips.
During the last bullish stint on the cryptocurrency in mid-march, $ETH had some trouble breaking through the $1,793 zone and struggled for days, before being rejected to $1,685.
However, Ethereum appears to have broken right through and may now have its first real shot at the $2,000 mark since August last year.
If the cryptocurrency closes above this $1,793 zone with a daily candle, a possible rally to $2,000 becomes the next line of action. And after this, the $2,200 mark is expected to follow.
However, a celebration might be hasty at this point, because the $2,000 zone might prove to be a tough nut to crack.
If Ethereum either fails to close above $1,793 or to break through $2,000, the bears will likely attempt to sink the cryptocurrency below this 20-day EMA.
Such a move would cause a steep drop to $1,680.
The daily RSI is approaching the overbought zone, so now may be the time to analyze all trades before making decisions.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.