Crypto Industry News:
Ethereum broke the $1,900 barrier for the first time in over nine months, sparking an uptrend for digital assets. It was a tough test as ETH traded below $1,900 for the last week. This recovery is undoubtedly welcomed by investors.
Ethereum shark addresses may have been behind the latest rally, as accounts holding between 100 and 10,000 coins have accumulated ETH at an accelerated rate over the past nine months.
In total, these addresses added 2.27 million coins to their holdings, which totaled $4.2 billion. This accumulation sent the asset to a new annual high as it collected around 1.4% of the total ETH supply.
Such a trend can be bullish for any digital asset, and it could have been the case with Ethereum. As their holdings surpassed a new yearly high, the ETH price was able to break above $1,900, a new nine-month high for the cryptocurrency. Since then, it has remained constant above this barrier.
Aside from the ETH hoarding sharks, another reason for the increase could be anticipation of the upcoming Shapell update. Thanks to it, players on the Ethereum network will be able to withdraw their ETH wagered, which has been impossible since the launch of Beacon Chain.
However, the update could very well be a "buy rumor, sell news" event for one simple reason - more ETH is coming back into circulation. Realistically, once bettors are able to withdraw their ETH, some of it is expected to hit exchanges in an attempt to take profits. But since the price of ETH has fallen significantly from its all-time high, it is likely that a good number will leave their coins waiting for better prices.
Technical Market Outlook:
The ETH/USD pair has made a strong breakout above the last technical resistance located at $1,858 as the bulls keep pushing up. The new swing high was made at the level of $1,940, but the market conditions on the H4 time frame chart are starting to look extremely overbought soon. The level of $1,858, $1,845 and $1,832 will now act as the support for bulls, so please pay attention to this level during the local pull-back. The next target for bulls is seen at the level of $2,000. The strong and positive momentum on the H4 time frame chart support the short-term bullish outlook for ETH.
Weekly Pivot Points:
WR3 - $1,842
WR2 - $1,809
WR1 - $1,792
Weekly Pivot - $1,776
WS1 - $1,759
WS2 - $1,743
WS3 - $1,710
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
