Ether (ETH) price technicals indicate a 35% gain in March 2022 due to several bullish technical and fundamental factors.
Ethereum price is rising above two major moving averages
On January 8, Ether price crossed the 21-week exponential moving average (21-week EMA; purple wave) and the 200-day simple moving average (SMA 200; orange wave).
Historically, these two moving averages have separated bull and bear markets. When the price of ETH is trading above, it is considered to be in a bull market, and vice versa.
The last time when Ether crossed above the 21-week EMA and 200-day SMA was in April 2022. But this was a fakeout, partly due to the collapse of Terra (LUNA) the following month.
But when Ether’s MA crossover does not guarantee more gains, the potential for upside becomes more if one is seen in conjugation with other bullish factors, described below.
Ethereum’s Shanghai hard fork, the accumulation of sharks
The price of Ether has risen by as much as 20% in the first two weeks of January 2023, driven up by the easing macro outlook and many anticipating the upcoming Shanghai upgrade of Ethereum.
The upgrade is expected to go live in March, and will enable withdrawal of staked ETH.
Related: 5 signs that an altcoin bull run is possible
Some experts, including Messari research analyst Kunal Goel and IntoTheBlock head of research Lucas Outumuro, believe that the Shanghai upgrade will make Ether staking more attractive despite the risk of a sell-off to reveal a large part of Ether’s supply.
Meanwhile, the rise of the richest addresses on Ethereum has been done by entities called “sharks” who have anywhere between 100 and 10,000 ETH. The number of sharks has increased by 3,000 since November 2022, according to data from Santiment.
This shows the strong accumulation of ETH, which may be the main reason behind the current rebound of ETH until now in 2023.
ETH price is rising above the main trendline
From a technical perspective, Ether is looking for a breakout above the resistance gathering, which is the 50-3D EMA (red wave) near $1,395, and the downtrend line that is part of the existing symmetrical triangle.
In other words, the decisive close above the confluence can make ETH seek the next upward target in the 200-3D EMA (blue wave) near $1,880, up about 35% compared to the current price level.
Interestingly, the $1,880 level was instrumental as resistance in May 2022 and August 2022.
Conversely, a pullback from confluence will increase the likelihood of Ether experiencing a correction to the lower trendline of the symmetric triangle around $1,200, or a 15% drop in price from current levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.