Ethereum’s Ether token experienced a 7.5% decline in its Bitcoin pair in 2023. However, things are looking up for ETH/BTC as the highly anticipated Shanghai hard fork upgrade is set for April 12.
This upgrade will enable Ethereum stakers to withdraw approximately 1.1 billion ETH in rewards, valued at over $2 billion as of April 8.
Many industry experts view the Shanghai hard fork as a bullish long-term development for Ether. It has already helped ETH outperform Bitcoin in April, with the ETH/BTC pair rising by around 4.75% month-to-date to reach 0.066 BTC as of April 8.
The upside move suggests the possibility of an extended bullish retracement towards the descending trendline resistance, marked as a “sell zone” on the chart. If successful, Ether could be on target for 0.075 BTC by June, up 10% versus current price levels.
However, a decisive close below the 200-3D EMA near 0.066 BTC could invalidate the bullish retracement setup. Some market analysts, such as CrediBULL Crypto, expect strong selling pressure near the 0.067 BTC resistance level that would lead to a 50% drop in 2023.
Despite this, the ETH/USD pair has rallied by more than 50% in 2023, primarily due to similar uptrends elsewhere in the crypto market. Cryptocurrencies have risen across the board in Q1, thanks to a weakening dollar, lower U.S. Treasury yields, and expectations of a Federal Reserve pivot on interest rate hikes.
These catalysts are likely to remain in the spotlight until the Federal Open Market Committee (FOMC) meeting in May. Ether could, therefore, sustain its yearly gains in April, consolidating inside the $1,800-2,000 range until the Fed decision.
Moreover, a decisive breakout at current levels could result in extended gains with a second-quarter ETH price target of over $3,000. The market will be watching closely to see how the Shanghai hard fork affects Ether’s performance over the coming months.
