Disclaimer: This platform includes third-party opinions. We do not endorse their accuracy. Digital asset prices can be volatile. Do your own research. See full terms here and our risk warning here. Binance Futures products are restricted in certain countries and to certain users. This communication is not intended for users/countries to which restrictions apply.
Over 1 million ETH worth over $2.15 billion has been withdrawn following the Ethereum Shanghai and Capella – Shapella upgrade as of April 17. On the flip side, roughly 370,000 ETH were deposited to users’ wallets in the meantime.
The Shanghai hard fork, part of the Shapella upgrade, went live on April 12, which allowed stakers on Ethereum to withdraw their coins and rewards for the first time since the deposits began on the Beacon chain in late 2020.
In the top 15 withdrawal addresses, 3 addresses have re-staked ETH after withdrawing, totaling 19.844 ETH. 3 addresses transferred 71,444 Ether to centralized exchanges after their withdrawal.
Roughly $333 million of ETH were sold following the Shapella upgrade, and $72 worth of Ether has been restaked.
ETH continues to stabilize at around $2,080 while the staking interest rate for running an Ethereum validator sits at under 5%.
While ETH added 10% following the successful Shapella upgrade, other altcoins followed its lead, prompting an “alt season” narrative on Twitter. Ether options contracts have also dominated the global crypto options activity, reaching nearly 60% following the upgrade. The short-term and long-term options skew has flipped positive – signals that there is an increased demand for Ether call options.
Ethereum rallies above $2,000 following Shapella upgrade
While many market commentators feared that the unlocking of ETH funds following the Shapella upgrade would cause a selling spree, the Ethereum price managed to climb above the $2,000 threshold, reaching a local high at $2,142 on April 16.
The largest altcoin by market capitalization has formed an ascending parallel channel on the weekly chart and is progressively working toward the bullish target given by the prevailing chart pattern toward $2,347, coinciding with the 100-week Simple Moving Average (SMA) and the 127.2% Fibonacci extension level. For the optimistic scenario for the bulls to come to fruition, ETH must slice above the local high which acts as resistance at $2,142.
If selling pressure increases, Ethereum could find the first level of support at the 78.6% Fibonacci retracement level at $1,980. An additional foothold may appear at the 61.8% Fibonacci retracement level at $1,853.
Key resistance levels to watch:
$2,142 - local high
$2,347 - 127.2% Fibonacci extension level at 100-week SMA
Key support levels to watch:
$1,980 - 78.6% Fibonacci retracement level
$1,853 - 61.8% Fibonacci retracement level
Bitcoin price retraces, but remains resilient to FUD
The Bitcoin price managed to maintain above $30,000 over the majority of the past week as the US Consumer Price Index (CPI) data was released on April 12, presenting lower levels than expected.
The official inflation rate for March has increased 5% year on year, which was slightly lower than expected. Bitcoin’s rally seems no longer to be driven by inflation, but the potential impact of a recession following the banking crisis that led to Silicon Valley Bank’s bankruptcy and the sale of Credit Suisse to UBS.
While commercial real estate prices fell 1.6% in February – the highest level since the 2008 financial crisis, Bitcoin’s steady rise demonstrated its resilience to fear, uncertainty and doubt.
Bitcoin is currently retracing and fell slightly below $30,000, however, the pioneer cryptocurrency may be able to discover support at the 78.6% Fibonacci retracement level at $28,579. Another line of defense may materialize at the 61.8% Fibonacci retracement level at $26,658 if selling pressure increases.
However, if the bulls take over, some resistance may develop at the local high at $31,026, then at the 100-week SMA at $33,506.
Key resistance levels to look out for:
$31,026 - local high
$33,506 - 100-week SMA
Key support levels to look out for:
$28,579 - 78.6% Fibonacci retracement level
$26,658 - 61.8% Fibonacci retracement level
Binance Coin nears key resistance level
BNB has been trading within a rising wedge pattern on the weekly chart, and is now reaching the upper boundary of the chart pattern.
In order for BNB to target bigger aspirations, the altcoin must slice above the topside trend line of the prevailing chart pattern at $356, coinciding with the 100-week SMA, which acts as resistance for the token.
Should the altcoin retrace and retest levels of support, the first line of defense will appear at the 78.6% Fibonacci retracement level at $332, then at the 61.8% Fibonacci retracement level at $318. An additional foothold may develop at the 50-week SMA at $285 if selling pressure increases.
Key resistance levels to keep an eye on:
$350 - local high
$356 - 100-week SMA at the upper boundary of the prevailing chart pattern
Key support levels to keep an eye on:
$332 - 78.6% Fibonacci retracement level
$285 - 61.8% Fibonacci retracement level
***Note: Binance encourages our users to trade responsibly. Trading can be engaging and fun, but trading is a serious business, and it can lead to financial and emotional distress. Trading derivatives carries risk, and cryptocurrencies and other digital assets often have high levels of price volatility.
Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial or investment advice, nor is it intended to recommend the purchase of any specific product or service. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. For more information, see our Terms of Use and Risk Warning.
