Ethereum
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The price of Ethereum (ETH) shows a recovery following the price of bitcoin. However, there is another reason that is fueling the rise of ETH – the Shanghai hard fork.
The developers said that this major update follows the hugely popular Paris or Merge hard fork. The upcoming update will allow validators to stake Ethereum on the Beacon Chain through the Ethereum Improvement Proposal (EIP) 4895.
In addition to this major update, the developers have agreed on another hard fork that will improve scaling with EIP 4844. Proto-dunksharding is a method of improving the scalability of the Ethereum blockchain by splitting the network into shards.
Implementation of EIP 4844 is scheduled for fall 2023.
Currently, the price of Ethereum continues to stagnate around the $1280 mark, showing a 3.9% increase over the past 24 hours. This uptrend has chances for the uptrend to continue to gather liquidity for buy stops remaining above the equal highs at $1309 and $1350.
Once these levels are reached, investors need to pay close attention to the momentum. Maintaining the bullish outlook could lift the Ethereum price to $1422, where a local top could form.
4-hour ETH/USDT chart
At the same time, a reversal at $1,283 could signal a bearish engulfing. If this downtrend gains enough momentum to close the 4-hour candle below $1150, it will invalidate the bullish thesis for ETH, creating a lower low.
In this case, the price of Ethereum could fall by 7%, the sell stop loss liquidity would drop below $1073, then the uptrend would resume.
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