Can Shanghai hard fork propel Ethereum price to $1,500
- Ethereum price spiked up by 6% on December 8 after a brief consolidation.
- This uptick coincides with ETH developers announcing the Shanghai hard fork release in March 2023.
- Invalidation of the bullish outlook will occur on the breakdown of the $1,150 support level.
Ethereum (ETH) price shows a strong comeback as it follows in Bitcoin’s footsteps. However, there seems to be another cause why ETH has a higher probability of continuing this uptrend - the Shanghai hard fork.
Shanghai and proto-danksharding hard forks timelines
Developers announced that this major upgrade follows the wildly popular Paris hard fork or the Merge. In a nutshell, the new upgrade will enable withdrawals of staked ether on the Beacon Chain for validators via the Ethereum Improvement Proposal (EIP) 4895 code.
In addition to this major upgrade, developers agreed on another hard fork that will improve scaling via the EIP 4844 code. The proto-danksharding is a method to improve the scalability of the Ethereum blockchain by splitting the network into shards.
The EIP 4844 is scheduled to be upgraded to the Beacon Chain in the fall of 2023.
Ethereum price makes a comeback
Ethereum price continues to stagnate around the $1,283 hurdle after rallying 6% in the last 24 hours. This uptick has a high chance of continuing this uptrend to collect buy-stop liquidity resting above equal highs at $1,309 and $1,350.
After reaching the said levels, investors need to pay close attention to the momentum. A continuation of the bullish outlook could propel Ethereum price to $1,422, where the smart contract could form a local top.
ETH/USDT 4-hour chart
While things are looking up for Ethereum price, a reversal at $1,283 could spell a bearish takeover. If this downtrend gathers enough momentum and produces a four-hour candlestick close below $1,150, it will invalidate the bullish thesis for ETH by creating a lower low.
In such a case, Ethereum price could slide 7%, sweep the sell-stop liquidity below $1,073 and then give the uptrend another go.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
