Ethereum’s Technical Indicators Reveal Potential 35% Price Surge by March 2022

Moving Averages: A Bullish Sign?

On January 8, Ether’s price made a leap, crossing above two significant moving averages: the 21-week exponential moving average (21-week EMA) and the 200-day simple moving average (200-day SMA). These averages are like the gates to the bull market kingdom; when pricing dances above them, it generally signals a bullish ambiance. However, history has taught us some lessons. The last time ETH made this jump was in April 2022, only to stumble due to the collapse of Terra (LUNA) shortly after!

The Upcoming Shanghai Upgrade: A Game Changer

Fast forward to 2023, Ether is feeling a rising tide, with a price increase of up to 20% in January alone! This upward trend is fueled by an easing macroeconomic outlook and whispers of the upcoming Shanghai upgrade, set to launch in March. This upgrade doesn’t just sound fancy; it’s expected to allow staked ETH withdrawals, making the act of staking much more appealing.

The Shark Effect

In more exciting news, the number of Ethereum ‘sharks’—those holding between 100 and 10,000 ETH—has crept up by 3,000 since November 2022. Think of these sharks as the elite investors quietly amassing their treasure. As they accumulate more ETH, it could be a signal to the broader market that something big is brewing.

Resistance and Breakouts: Waiting for the Right Moment

From a technical viewpoint, Ether is gearing up for a potential breakout above a resistance confluence. The key player in this game is the 50-3 day EMA, currently hovering around $1,395, coupled with a descending trendline part of a symmetrical triangle. A decisive closing above this level could catapult Ether toward the next target of around $1,880!

But Beware of Pullbacks

Of course, every silver lining has a cloud. If ETH fails to break through this confluence, it may see a pullback to around $1,200, which would equate to a 15% dip. It’s a classic case of ‘high risk, high reward’ that every trader knows too well.

Investment Caution: Proceed with Care

This analysis is not investment advice, nor should it be regarded as such. With any trading or investing endeavor comes risk. Be sure to dig into your own research before making big moves!