Despite the continuing struggles of FTX, Bitcoin and Ethereum prices have managed to remain resilient. Both Bitcoin (BTC) and Ethereum (ETH) have seen an upswing, indicating a positive sentiment for cryptocurrency investors. 

This is especially prominent, with both seeing an increase of over 20% in just one week. Digital assets are back in the news as the global market cap has recently broken the $1 trillion mark.

Bitcoin Mining Difficulty Reaches All-Time High: What Does This Mean For Miners?

Furthermore, the recent price movement has also been accompanied by an increase in Bitcoin mining difficulty. This measure reflects how difficult it is to solve the cryptographic puzzle required to generate a block on the network.

On January 15, the mining difficulty increased by more than 10%, reaching an all-time high of 37.73 T. This indicates that, on average, it takes 37.73 trillion hashes (or tries) to find and add a legitimate Bitcoin block reward to the blockchain.

A bullish reversal in the cryptocurrency asset's price movement aligns with the number used to calculate how challenging it is to mine a Bitcoin block.

Exploring The Factors Behind Ethereum's Price Surge: What Is Driving Its Growth?

The second-largest cryptocurrency by market capitalization, Ethereum, saw an increase of 21% over the past seven days. According to experts, bulls are almost exhausted, and traders who hold short positions may benefit before the Shanghai upgrade.

Ethereum Shanghai Upgrade

Ethereum development is on schedule for the Shanghai hard fork, which will be preceded by a token unlock event. ETH staked in the deposit contract will be unlocked for the first time since the contract's debut in November 2020. 

The circulating quantity of the cryptocurrency will increase by at least 35,000 ETH after it has been unlocked and unstaked. According to experts, this could potentially increase the selling pressure on the commodity and reduce the value of the Bitcoin rival.

Ethereum core developers have been making steady progress toward meeting their March deadline for the launch of Shanghai. This update will also bring with it the ability to withdraw staked ETH from the network. 

Several Ethereum Improvement Proposals have been incorporated into this upgrade. The update, along with other releases, marks the "Surge" phase of the ETH cycle, which aims to improve the network's scalability and infrastructure.

Bitcoin Price 

On January 16, BTC/USD opened trading at $20,882.00 and has since seen slight growth of 0.60% in the last 24 hours bringing it up to $20,826.00. From its highest of $21,433.00 to its lowest of $20,697.00 there has been a steady increase in value by over 21% in the week prior.

On Monday, Bitcoin's price faced strong resistance at the $21,400 level. The closing of daily candles below this level, particularly a doji candle, suggests the possibility of a bearish correction as both the RSI and MACD are coming out of the overbought zone.

Bitcoin Price Chart - Source: Tradingview

On the daily timeframe, the double top resistance level is likely to drive a downtrend or bearish correction until the $20,800 or $20,000 levels. Furthermore, a breakout beneath this could create more room for selling until the $19,250 level. 

Alternatively, an increased demand for BTC could break through the $21,400 level and target $22,850.

Ethereum Price 

At the start of the day, ETH/USD was at $1,551.79. It had a high of $1,584.30 and a low of $1,534.9 in that same period. Currently, it is trading at around $1,542.85 with a gain of 0.75% in 24 hours and a 19% cumulative increase over the past week.

Ethereum has seen a surge in the value of late, with its key support point at $1,500. If it can close daily candles above this level, its price could be heading toward the next resistance area at $1,660.

Ethereum Price Chart - Source: Tradingview

Ethereum has recently broken out of a symmetrical triangle pattern, which is often a bullish indicator. This was followed by the formation of three white soldiers and a bullish engulfing candle - further confirming an increased buying sentiment from investors. 

All these technical signals point to a bullish bias in the market. Thus, investing in trades with prices above $1,525 should be considered with an aim to reach $1,650.