ETH/USD Price Analysis – February 20, 2023

Daily Price Outlook

ETH/USD is currently trading at $1,683.5, reflecting a 0.71% decrease in the last 24 hours. However, its value has increased by more than 11% in the last seven days. While the price of Ethereum has been consolidating within a range, there are indications of a potential bullish momentum.

Ethereum's Shanghai Upgrade: A Game-Changer for Developers and Investors Alike

The upcoming Ethereum Shanghai upgrade, expected in March, will allow for the withdrawal of over 16.5 million ETH staked on the blockchain and is expected to be the next significant driver for the cryptocurrency market.

With the implementation of Shanghai, Ether which was previously locked up will eventually become liquid for the first time since December 2020. Furthermore, the update will complete the network's transition to proof-of-stake (PoS), which began during the Merge.

The impending Shanghai upgrade could have a significant impact on the demand-supply dynamic in the Ether market, potentially making the ETH/USD rate more unpredictable than it was in the weeks following the Merge.

Ethereum Burn Update: The Latest on the Network's Token Burning Mechanism

On February 19, the CEO of Access Protocol, Mika Honkasalo, tweeted statistics from Ultrasoundmoney showing that Blur.io's activities destroyed approximately 252 ETH between February 18 and February 19.

Furthermore, the two contracts discovered by Ultrasoundmoney accounted for a total of 310.7 ETH, compared to Uniswap's and OpenSea's contributions of 239.39 ETH and 177.8 ETH, respectively. Uniswap has just overtaken Blur.io by burning 328 ETH after adding its V2 and V3 contracts.

The recent increase in the burn rate indicates that the Ethereum network is performing well. It shows that the new burning process is functioning as intended, and the transition to the new consensus mechanism is proceeding smoothly.

While the burning process is designed to decrease the total supply of ETH, it's important to note that it does not guarantee price growth. Therefore, market demand and sentiment will continue to determine the value of ETH/USD.

ETH/USD Intraday Technical Levels

Support   Resistance

1661.06    1712.04

1640.62    1742.58

1610.08    1763.02

Pivot Point: 1691.60

ETH/USD – Technical Outlook

Similar to Bitcoin, the ETH/USD pair has gained bullish momentum after finding support near the $1,650 level. On the 2-hour timeframe, Ethereum has formed a symmetrical triangle pattern, indicating indecision in the market and keeping ETH in a choppy range.

On the upside, a bullish bounce-off in Ethereum above the $1,650 level would expose its price to the $1,720 level. Alternatively, a bullish breakout of the $1,720 mark and the symmetrical triangle pattern could drive further bullish price action. In either case, $1,760 and $1,800 are likely to act as resistance levels.

On the downside, Ethereum's support levels are around the $1,650 or $1,625 levels. The RSI and MACD are showing divergence, similar to the Bitcoin price analysis.

This suggests that investors may be awaiting a major news event such as the FOMC meeting minutes to determine further trends in the market.