Ethereum reverses post-Shanghai upgrade gains, drops below $2,000

The price of ethereum (ETH), the second-largest cryptocurrency, is plummeting days after the highly anticipated Shanghai upgrade.

Although the trading and cryptocurrency community eagerly awaited the update, prices are moving lower and below the $2,000 level even after the update enhanced the network’s performance.

Crypto market remains bearish

Ethereum is currently trading at $1,848.00 and is down 4% in the last 24 hours.

Since last week, ETH, like the broader market, has been moving lower. The coin is now down 11% from recent highs registered after the Shanghai Upgrade, canceling the initial optimism traders had on the second most valuable cryptocurrency.

At this pace, users are questioning the strength of the uptrend and whether bulls will flow back, pushing prices higher.

Reading from the general crypto market performance, asset prices are fragile. This could be partly due to fears of the economy turning for the worst. Also, stock market fluctuations and the high inflation rate don’t help the situation.

From early this week, bears have been in charge, repressing gains and pressing crypto asset prices lower. ETH has been no exception despite outperforming bitcoin (BTC) prices.

At the time of writing, bitcoin is trading at $27,261.98, down 12% drop from its recent peak of  $31,000.

Ethereum traders expect a bounce

ETH experienced a false breakout of the $1,896 psychological support level. If the bulls step up, the coin might recover to between $1,920 and $1,930 zone.

Still, chartists remain pessimistic on ETH prices. If prices remain below $1913, bears could continue pushing the coin to new lows.

It is despite ETH prices consolidating inside a wide channel with bears frequently emerging on top. The failure of bulls to overcome bears mean prices could be stuck below $2,000 for an extended period, a disadvantage for confident bulls.