The Ethereum (ETH) market experienced a relatively high resistance level of around $1,700 in February after a rally of about 36 percent YTD. Fueled by high whale accumulation, the second-largest digital asset by market capitalization is aiming at $2,000 to invalidate the year-long bear market. After hitting its rock bottom below $1,000 in June last year, the Ethereum price has consolidated around the current range.
However, the Shanghai upgrade is nearing, which will initiate the withdrawal of staked ethers on the beacon chain. With the upgrade, some analysts argue Ethereum will record increased sell pressure as stakes fear the SEC crackdown on staking programs. On the other hand, some crypto analysts believe Ethereum staking will rise as investors can easily access their assets.
Irrespective, Matthew Dixon, CEO of Evai, thinks the crypto market could record a temporary drawback before continuing the rally following a tepid FOMC meeting and a robust United States GDP estimate.
Is Ethereum to $2000 Plausible?
The Ethereum price is well bolstered by the 200 moving average (MA) that suggests a looming breakout to $2,000. According to famous crypto economists Michael van de Poppe, the Ethereum price may retract to $1,600, but the rebound will push it to around $2,000
“Indeed, $1,600 is a great level for longing on Ethereum. Most likely, the trend will continue from here,” Poppe noted.
However, Poppe advised swing traders to have a stop loss of around $1,528 to huge surprises on the negative side.
A breakout toward $2,000 would mean Ethereum price has entered a multi-quarter consolidation period before officially commencing the next bull rally.