Ethereum is showing signs of upward momentum today. The second-largest cryptocurrency's price has surged 1.54% to $1,854.47 over the past 24 hours. Ethereum's market capitalization now stands at $222.42 billion.

The 24-hour trading volume for ETH is $4.02 billion, indicating decent liquidity. Over the past hour, Ethereum's price has seen a slight 0.17% uptick. However, the price remains down 1.06% over the past day and 2.12% over the past week.

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Is This the Start of an Uptrend for Ethereum?

Ethereum's 1.54% surge today provides a glimmer of hope for bulls after the recent downtrend. The price has found support above the key $1,800 level, which could act as a launching pad for further gains.

The slight hourly uptick shows early signs of a potential trend reversal. However, Ethereum needs to reclaim higher levels to confirm the start of an uptrend. The price remains below the 50-day moving average, signaling that the short-term outlook is still bearish.

Key levels to watch are the 2021 lows around $1,700 and the psychological $2,000 mark. A decisive break above $2,000 would likely confirm a new bull market for ETH. But failure to hold support could see Ethereum retest lower levels.

What's Next for Ethereum in 2023?

Overall, Ethereum's price action remains correlated to Bitcoin's in the medium term. If Bitcoin can maintain its recent recovery, Ethereum could also capitalize on bullish sentiment.

Fundamentally, Ethereum has several potential catalysts ahead. The Shanghai upgrade is slated for early 2023 and could provide a boost if it progresses smoothly. Furthermore, staking activity on the Beacon Chain continues to rise, highlighting conviction in Ethereum's long-term potential, even amid recent price weakness.

However, macroeconomic headwinds persist, including the Fed's tightening cycle. As a result, volatility likely remains elevated in the coming months. But Ethereum's healthy on-chain activity and upcoming upgrades make it poised to outperform if the crypto market sees a broader recovery.