Ethereum has exhibited extreme volatility over the past week, creating a bearish divergence after losing support from the bulls.
Additionally, the SEC’s ongoing battle against the crypto space is being touted as a potential market failure in terms of regulation. Therefore, the altcoin market continues to hover in an uncertain situation after the volatile Bitcoin trading sessions.
However, Ethereum is gaining community support as its Sepolia testnet has undergone a successful upgrade, moving closer to the Shanghai hard fork.
March becomes a vital month for Ethereum!
On February 28, the Ethereum network’s Sepolia testnet executed a successful upgrade, simulating the upcoming Shanghai hard fork scheduled for the mainnet in March. This upgrade, called “Shapella”, which merges the names of the upcoming Shanghai and Capella hard forks, has actually been executed on the testnet.
A significant change allows validators to retrieve their staked Ether (stETH) from the Beacon Chain and send it back to the execution layer. To validate on the Ethereum blockchain, validators had to stake 32 Ether (ETH), which equals $1,621.
Currently, they are allowed to withdraw rewards exceeding 32 ETH and continue validation. Alternatively, they can choose to withdraw all of their 32 ETH with rewards and discontinue validation.
The next phase, before the implementation of the Shanghai fork on the mainnet, is to deploy the upgrade to the Ethereum Goerli testnet, which is expected to begin in March. It is expected that the Shanghai upgrade will play an important role in making Ethereum the dominant altcoin in the crypto market.
When will the price of Ethereum start a new increase?
Despite its efforts, Ethereum price is currently unable to clear the $1,664 resistance zone. In order to start a new recovery in the next few days, ETH must break above both $1,660 and $1,700.
After finding support at the $1,550 mark, Ethereum price strove to rally once more. It passed the $1,638 threshold; however, the bears hampered its advance near the $1,660 resistance level. As a result, the price peaked around $1,665 before falling again.
At the time of writing, the price of ETH is trading at $1,634, with a decline of 0.74% in the last 24 hours. Analyzing the 1-day price chart, Ethereum is poised to give more bullish signals as the Stoch RSI level stabilizes in a bullish region.
Prominent crypto trader FlashTrades predicts that Ethereum is aiming to break its immediate resistance at $1,750. A push above the EMA-20 trendline and a break above $1,690 will push ETH price to its monthly resistance of $1,800.