Ethereum (ETH) Price Shoots Another 6% & Closer to $2,000, Watch This Resistance

eth shapella upgrade

The world’s second-largest cryptocurrency Ethereum (ETH) has given another major breakout just a week before the Shanghai upgrade. As of press time, Ethereum (ETH) is trading up by 5.68% at a price of $1,911 and a market cap of $230 billion.

On the weekly chart, ETH has outperformed the rest of the altcoins as well as Bitcoin with 7.3% gains. It is for the first time since August 2022 that the ETH price has surged past the $1,870 level.

On-chain data provider Santiment explains that this 8-month high comes due to the steady accumulation of ETH sharks over the past few months. It reported:

“Ethereum jumped back over $1,870 today for the first time since August 17, 2022. This near 8-month high comes as sharks have been accumulating steadily since last summer. Addresses holding 100-10k $ETH have accumulated $4.24B in the past 9 months”.

Courtesy: Santiment

With today’s price surge above $1,900, Ethereum (ETH) extends its 2023 gains to more than 60% closing the gap with Bitcoin. Popular crypto analyst Ali Martinez noted:

On-chain data reveals that the next critical resistance area is between $2,100 and $2,150, where over 200K addresses had previously purchased over 18M $ETH.

Courtesy: IntoTheBlock

Ethereum Liquidity on the Downtrend

Although the crypto market has registered a strong recovery this year in 2023, liquidity remains one of the major concerns for the top two digital assets – Bitcoin and Ethereum. Blockchain analytics firm Kaiko reported that ever since the FTX exchange collapse, the Ethereum market depth has been on a downtrend. The report notes:

When charting the quantity of bids and asks within 2% of the mid price on USD/USDT order books, we can observe an unsurprisingly similar downwards trend. In mid-March, ETH market depth hits its lowest level since last May.

Courtesy: Kaiko

When compared to Bitcoin, Ethereum’s drop in market depth is less extreme. While BTC’s drop in market depth is at 50%, ETH’s is at 41%. Kaiko adds: “Overall, both assets have suffered in the aftermath of the FTX collapse and banking crisis, with fewer market makers supplying liquidity to order books”.

Courtesy: Kaiko

The post Ethereum (ETH) Price Shoots Another 6% & Closer to $2,000, Watch This Resistance appeared first on CoinGape.

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Bhushan Akolkar