Ethereum is one of the top crypto projects that has revolutionized the crypto sphere with its advanced network capabilities and utilities. The platform is home to several emerging applications like decentralized finance (DeFi), non-fungible tokens (NFTs), and even Metaverse projects.
Although it was significantly affected by the 2022 market crash, it achieved a milestone by completing the Merge upgrade. As the bearish rally on the crypto market is slowly settling down, experts are highly bullish about Ethereum since it has a series of updates and developments in the pipeline. Investors are curious to know its price prediction for 2023 and whether ETH would break free to hit the $2K target.
Ethereum’s Price Resistance
Despite the monumental progress Ethereum made in 2022 with the transition from Proof-of-Work to Proof-of-Stake, the price of the crypto is held captive by a major resistance point.
As per reports, a major resistance zone is blocking Ethereum. As shown in the chart, this was formed as a result of meeting the horizontal resistance in the $2200-2300 range, marked in red, the descending line in yellow, and the white line showing the 200-day moving average.
Therefore, Ethereum is on the verge of breaking out and nearing psychological resistance at $2,000. There has been increased selling pressure for Ethereum over the past week as investors react to the rising regulatory pressure.
Key Levels To Watch As Ethereum Price Steadies Recovery
Considering technical analysis (TA) indicators like Exponential Moving Average (EMA) and moving averages (MA), let’s see ETH price is ready for recovery.
The Merge upgrade has turned it into a more sustainable, green coin. During the mid-February rebound from a support level of $1,466, the price successfully penetrated the resistance at the upper falling trendline. Nevertheless, it only managed to hit $1,740 before getting affected by the overhead pressure. ETH is currently trading at $1,653.43.
As per charts, the bullish narrative hails from support at $1,560, as given by the 50-day Exponential Moving Average (EMA), marked in red. It is reinforced by the 200-day EMA, marked in purple. Traders are booking forward for this pattern to confirm the long-term bullish outlook in ETH’s trading.
The massive rally of the price that formed the last olden cross in May 2021 in the bull market confirms that ETH has the potential to uphold the bullish outlook in the long run, making it an ideal long-term investment option.
Experts opine that traders waiting to buy ETH as it recovers toward $2,000 should closely watch the Moving Average Convergence Divergence (MACD) indicator and wait until it shows another buy signal.
Amidst rising speculation, it is still unclear as to which path Ethereum would take down resistance at $2,000. Therefore, it would be wise for traders to watch its behavior around $1,640 because breaking and holding above this level could significantly skyrocket its price to reach the $2k target.
On the other hand, considering the downside, the ETH price may be forced to remain stagnant at the support level of $1,562, as underlined by the 50-day EMA. Further, if it comes down again, it might resolve to find solid support at $1,400.
ETH Addresses In Profit Hold Firm as Ethereum Price Breakout Beckons
Regardless of the massive pressure, investors who are gaining good profits do not plan to close their positions as of now. Data from IntoTheBlock exposes that over 2.58 million addresses previously purchased 11.42 million ETH between $1,590 and $1,638.
When Ethereum struggles to sustain the uptrend, these investors can significantly throw in their support behind the token for a bullish outcome. Moreover, the massive buyer congestion has the power to push bears out of control. It is also worth mentioning that the Ethereum price is facing relatively weak seller congestion zones, and a minor push could quickly raise the price above $1,800, paving the way for the $2K target price.
Is Ethereum Set For A Bull run in 2023?
Experts predict that ETH is all set for its new bullish rally in 2023. Over time, the blockchain has evolved to be the market leader in dApps, NFTs, and DeFi, with almost 3,000 dApps in areas from finance to technology and gaming.
The Merge update has paved the way for several other small and significant developments on the Ethereum network. Currently, crypto experts are waiting for the Sharding update, which will significantly improve network bandwidth and lower gas prices.
Another major update in the pipeline for Ethereum is the launch of the long-awaited Shanghai mainnet shadow fork. This could help ETH kickstart another bullish rally shortly, making it a good buy now. With the Shanghai update around the corner, many experts believe that the $2K target is a starting point for ETH and have speculated that the crypto has the potential to end 2023 with a new all-time high of $5000.
Along with this, reports show that Ethereum has been adding close to 130,000 new unique addresses daily since the beginning of this year. It has touched an all-time high of 221 million, which shows a steady rise in on-chain activity and engagement.
Both institutions and investors have started buying ETH, as it is all set for a massive comeback in 2023. Although the crypto is currently stuck at a resistance level, further developments could push ETH to break free to hit the $2k target.