Ethereum price could establish a massive move as the Shanghai upgrade augurs well for ETH

• Ethereum price could set up a massive move soon following the successful completion of the Shanghai/Capella upgrade.
• Despite the Wednesday sell-off, ETH is not yet in the bearish zone.
• The $1,822 support level is vital for ETH and could facilitate a bounce in the coming days.
• A daily candlestick close below the level above could invalidate the bullish thesis.

Ethereum price (ETH) remains bullish a week after successfully completing the Shanghai/ Capella (Shapella) upgrade, rising significantly since April 12. The event, which enabled ETH token withdrawals for holders, is boding well for the second-largest crypto by market capitalization as the Proof of Stake (PoS) token continues to record a surge in demand.

Currently, the Ethereum blockchain holds approximately 18 million ETH in staking contracts, amounting to around $36 billion.

Ethereum price after the Shapella upgrade

Ethereum price continues to trade within a ranging market eight days after the Shapella upgrade, with a potential move that could manifest from this zone in the coming days. Notably, cryptocurrency exchanges recorded a net inflow of 179,500 Ether after the upgrade, translating to around $346.08 million at current rates. Similarly, traders made deposits totaling 1,101,079 ETH to exchanges between April 13 and April 16, against withdrawals of up to 921,579 tokens.

It is worth mentioning that these numbers marked the largest four-day net inflow in a month. When investors move their assets to exchanges, it often indicates plans to sell, and in turn, hints at an incoming price drop. Prior to the upgrade, one cohort of market players expressed concerns that millions of unlocked Ether would flood the market, fueling a price crash. The other cohort urged that the impact would be minimal and Ethereum price could rise.

Well, the upgrade was seamless, positively impacting Ethereum price as it surged past the $2,100 level on April 13, marking the highest hit since May 2022 when the Terra ecosystem imploded. Noteworthy, ETH even outperformed Bitcoin (BTC) 24 hours after the upgrade.  

At the time of writing, Ethereum price is $1,928, down almost 6% in the last 24 hours as some traders resolved to book profits following the latest price surge related to Shapella. The red candlestick shows that these traders have outperformed buyers for the ETH/USDT trading pair by around $30 million since Shapella.

Ethereum price analysis, bullish or bearish?

On April 19, ETH broke out of the price range sustained for five consecutive days, dropping around 6% as bulls engaged a load-shedding gear. While the sell-off has taken Ethereum price back below the $2,000 level, the largest altcoin remains bullish. In fact, it could be coiling up for a major breakout as it tests the major support at $1,822.

ETH/USDT 1-day chart

The chance of an increase in volatility is high, considering that the market's open interest is at an all-time high. As a result, any directional change in token prices can easily trigger stop-loss orders. Such an outcome could lead to an acceleration of Ethereum price increases, with historical data showing that high open interest levels are often accompanied by large market fluctuations.

On the four-hour timeframe (see below), Ethereum price is seen to vividly test the critical support at $1,822, which bulls must defend to prevent further losses. The 5% sell-off showcased on Wednesday does not suggest that ETH is in the bearish zone. Rather, the critical support level is vital as defending it increases the probability of a price rebound and rally back up in the coming days.

ETH/USDT 4-hour chart

Conversely, a violation of the $1,822 support level could increase the chances for a lower price push for Ether.

Ethereum price is not expected to drop significantly as the successful Ethereum network upgrade boosted investor confidence in locking in Ether, leading to reduced supply and increased demand. Moving forward, institutional investors could exercise caution and possibly even refrain from staking in the meantime. As such, the performance of ETH after the Shapella upgrade will hinge more on the risk appetite of investors compared to technical analysis.