Can Ethereum break through $2,000 ahead of Shanghai?

There is already some hype around Ethereum ahead of the Shanghai update. The beginning of 2023 marked the possible start of an upswing, with Bitcoin, Ethereum, and other cryptocurrencies shooting up. ETH, which was at the level of $1,200, was able to add 33% to the value and reached $1,600 at some point, after which it is now undergoing an adjustment along with the rest of the market.

An additional factor in terms of moving up for Ethereum, of course, is the hype around the upcoming Shanghai update. It will not bring such benefits as some cryptocurrency enthusiasts and investors would like, but will please them with other amenities.

Instead of focusing on lowering transaction fees, the developers have decided to focus on withdrawal speed. This will help those investors who were able to invest 32 Ethereum or more in staking. However, calling the quick withdrawal feature useful is a stretch, as long-term investors are unlikely to withdraw ETH and take profits until the coin rises to the desired level.

A full Shanghai update should be released in March, but earlier, Ethereum developers announced their plans to launch a test network for everyone at the end of February.

One way or another, the update will be released and because of this, we will soon be able to see a local jump and a possible overcoming of the $2,000 mark. If the coin manages to gain a foothold above $1,600, then in this case, growth may accelerate.

It is noteworthy that in the field of Ethereum there is optimistic news regarding not only such indicators as the cost and price growth. It is worth noting that the emission of the main altcoin indicates the deflationary nature of the coin. At the moment, the total supply is over 122,000,000, which is 2,000 times less than when Ethereum 2.0 was released last September. This means that the coin burning process is going very well.

According to technical analysis, the resistance point is at $1,660. At the time of writing, the price is at $1,530. Consequently, a little more than $100 is left to the nearest test level, and we will soon be able to watch the battle of sellers and buyers. The first time the price bounced off this level, which means more chances to break through the second time.

On the other hand, given that ETH largely follows the movement of bitcoin, then if BTC does not go up, then we should not expect growth from Ethereum in the near future.

If in the end the main altcoin manages to break through the nearest resistance level and consolidate above $1,660 at least on the four-hour timeframe, then the road to $2,000 can be considered open. The next month, due to such observations, will be quite interesting for cryptocurrency enthusiasts, especially for fans of Ethereum.