Ethereum Price Prediction as Shanghai Upgrade Approaches – Can ETH Hit a New High in 2023?

Ethereum Price Prediction as Shanghai Upgrade Approaches – Can ETH Hit a New High in 2023?

After hitting its highest level in a little under eight months on Wednesday in the mid-$1,900s, Ether (ETH) is experiencing a modest pullback and was last changing hands in the mid-$1,800s.

On the day, the world’s second most valuable cryptocurrency by market capitalization that powers the world’s most widely used smart-contract-enabled Ethereum blockchain is down a little over 2.0%, according to TradingView.

But the cryptocurrency’s near-term technical outlook continues to look good. ETH has been finding decent support recently from its 21-Day Moving Average, and all of its other major moving averages are on the rise in consecutive order.

The fact that ETH is currently finding decent support in the mid-$1,800s has spurred optimism that an extension of gains in the short-term towards the August 2022 highs just above $2,000 remains a strong likelihood.

Moreover, ETH’s 14-Day Relative Strength Index (RSI) is not yet in overbought territory, suggesting a reduced risk of near-term profit-taking.

Some analysts and traders have expressed concerns that, in wake of a series of key upgrades to the Ethereum blockchain on the 12th of April, ETH could experience some short-term selling pressure.

The so-called “Shapella” upgrade will, amongst other things, allow for the withdrawal of staked Ether tokens.

Most analysts view the development as a long-term positive for the network – it is assumed that more flexible staking withdrawals will eventually attract many more ETH owners into staking their tokens.

But some think ETH could experience either a “sell-the-news” reaction and have warned that there could be short-term price pressures as investors sell ETH tokens that have been stuck in staking contracts for a long time.

ETH staking has been active since late-2020 on Ethereum’s beacon chain, prior to the Ethereum blockchain’s merge to proof-of-stake last September.

Price Prediction – Can ETH Hit An All-Time High in 2023?

Even if ETH was to experience a post-Shapella upgrade dip, many expect that the downside would be short-lived.

ETH also saw a strong bounce from its 200DMA last month, a strong medium-term bullish indicator.

The “golden cross” (when the 50-Day Moving Average crosses above the 200-Day Moving Average) in early February is another good sign for ETH’s medium-term technical outlook.

Moreover, macro tailwinds, such as expectations that the Fed will be cutting interest rates later this year to stave off a bank crisis and recession, continue to offer crypto markets broad support.

While it can certainly be said that ETH has a positive medium-to-long-term outlook, betting on the cryptocurrency to return to all-time highs this year is another thing.

Ether hitting fresh all-time highs this year would require it to rally 160% from current levels.

But this is the crypto market. ETH is already up more than 100% from last year’s lows in the $800s.

And between the months of November 2020 and April 2021, Ether gained 600%.

A 160% rally this year should thus by no means be ruled out as a possibility.

Ether (ETH) Alternatives to Consider

While ETH’s outlook is strong, investors should nonetheless always be on the lookout to diversify their crypto holdings.

One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.

This is where investors buy the tokens of up-start crypto projects to help fund their development.

These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.

Of course, there is always a chance that the project’s founders don’t deliver on the project’s promises, and the presale tokens never take off in price (hence why they are sold so cheap).

But many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.

If an investor can identify such projects, the risk/reward of their presale investment is very good.

The team at Cryptonews.com spends a lot of time combing through presale projects to help investors out.

Here is a list of 15 of what the project deems as the best crypto presales of 2023.

See the 15 Cryptocurrencies

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.