The growth of the cryptocurrency market: how it was affected by the update of Ethereum

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6 min.

Opinion

Investors' appetite for risk has returned.The rise in the value of bitcoin is catalyzing the demand for altcoins.Even Shapella is not a hindrance.

Bitcoin

In a week, the first cryptocurrency added more than 10%, due to this, it was possible to overcome the $30,000 mark.Only on Wednesday, April 12, bitcoin fell by 1.13%.The most successful was Monday, April 10, when BTC rose by 4.63% at once.

Source: tradingview.com

Several factors contributed to the positive dynamics of Bitcoin, one of them was the ongoing liquidation of short positions.During the week, they were closed in the amount of more than $170 million, while long positions were closed in the amount of less than $60 million, which is almost three times less.It is not difficult to guess that most investors are bullish.

Source: coinglass.com/ru

The growth of most cryptocurrencies, andBitcoin in particular was facilitated by the US Federal Reserve's decision on rates. To be more precise, it was not so much the decision that influenced it, but rather the rhetoric of the leadership of the American Central Bank, which described in general phrases the possibility of further increases. Galaxy Digital founder Michael Novogratz agrees with this position and believes that easing by the regulator could push the price of Bitcoin up to $40 000. 

This adds optimism to crypto enthusiastsIt is a fact that, in general, securities of representatives of the technology sector are growing. Since the beginning of 2023, the NASDAQ index is up more than 16%, and the Dow Jones Industrial Average is up just over 2.5%.

From the point of view of technical analysis of Bitcoincontinues to be in an upward trend. In the week from April 7 to April 14, the previous resistance level of $29 380 was overcome, which has now become a support level. The new resistance level is $32 376.

Source: tradingview.com

Along with Bitcoin, the index of fear and greed continues to grow. Compared to the values ​​of a week ago, it
increased by four points and is 68. This indicates the prevalence of greed among investors in BTC.

Ethereum

Over the past seven days, the price of ether has risen by10%. The second largest cryptocurrency in the world by capitalization was able to overcome not only the $2 000 barrier, but also the $2 100 barrier. On the evening of Friday, April 14, the price of ETH is $2 108.2.

Source: tradingview.com

The main event of the week was the long-awaited update of Shapella. After its completion it became available
withdrawal of cryptocurrency from staking. In contrast to the expectations of a number of market experts who believed that the rate could collapse (
for example Galaxy Digital), Ethereum, on the contrary, has grown. Moreover, the growth on April 13 continued on April 14.

In addition, the positive dynamics of the airwaves are clearlyassociated with active mention of cryptocurrency on social networks. In recent days there has been a serious surge in mentions of the brainchild of Vitilik Buterin. The number was the largest since mid-September 2022, when the transition to Proof-of-Stake (PoS) was made.

Source: lunarcrush.com

Since March 10, ether has increased in price by almost 60% withoutany visible setbacks. Sooner or later a correction will begin, however, at the moment there are no prerequisites for unrest. They will appear if the price falls below the support level around $2 030. The nearest resistance level will be $2 160 – the minimum of January 2022, after which the coin has been growing for more than two months.

Source: tradingview.com

Solana

The price of the SOL token increased from April 7 to April 14by almost 22%. At its maximum the price reached $26. The last six days - from April 9 to April 14 - the cryptocurrency has been growing exceptionally. The most successful day of the week was Tuesday, April 11, when SOL immediately increased by 9.71%.

Source: tradingview.com

One of the main reasons, like Bitcoin,liquidation of short positions became predominant. During the week, almost $0.5 billion of shorts were closed, which is 2.75 times more than the same figure for BTC. At the same time, the number of liquidations of long positions was 2.2 times less and amounted to about $214.2 million.

Source: coinglass.com

Another factor that drew attention to Solana this week was
launch on April 13 of her own smartphoneSaga. The smartphone will run on the Android operating system. For the first time, information about a smartphone from Solana appeared back in June 2022; it will be possible to purchase it soon, the creators promise, starting on May 8, 2023. Expected cost
is about $1 000.

From a technical analysis point of view, the priceSolana is in an uptrend. This is evidenced by the fact that SOL is trading above the 50-day moving average (marked in blue). The previous local high of $23.94 is now support, and resistance is the 2023 high at $27.05.

Source: tradingview.com

In other words, the crypto market is doing well and continues to grow. The fears of a number of experts who were wary of a collapse in the airwaves after the Shapella update were not justified.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.