Ethereum surged after the Merge announcement. Although the Merge announcement is old news, Ethereum has already crossed the $2,000 barrier after the bearish July markets.
After over a month of price increases, ETH’s price closed in on the $2,000 mark. This is the highest price since the collapse of crypto markets. Yet, investors and traders have both gained confidence from the latest rally.
Merge: The highly-anticipated merger
This rally took place due to the recent announcements about ETH Merge that have been the topic of discussion among crypto traders all over the globe. Vitalik Buterin, co-founder of Ethereum, said that this will improve efficiency in the network, and lower overall carbon footprint.
However, these announcements boost investor confidence and push the price higher.
ETH fluctuates between $1.718.41 & $1.791.76 at the time of writing. It also tries to hold onto the 78.60% in the Fib Retracement.
Ethereum Bulls Strive To Break Resistance
Support is at $1740.63, with resistance at $1,802.12. To maintain the rally, bulls have tried repeatedly to reach $1,802.76 resistance.
However, as shown in the graph, the rally seems to have stalled and the bull is now trying consolidate it.
Two things might happen while ETH’s price stabilizes; (1) the resistance will be pierced on a later day and will rally again, or (2) the price breaks the $1,740 support and drops.
If the price pierces the 61.80% Fib level, then the bulls will gain momentum and may reach $2,000 in a few days’ time. The indicators show otherwise.
CCI and Stochastic RSI indicate a slower downtrend in trend prices. The CCI stands at 16.69, while Stoch RSI is 16.17. This indicates a slight sell-off.
If bulls gain momentum, the price may jump again to break through to the next resistance level of the 61.80% Fib. However, if the price drops, support can be found at the $1662.31 level.
This is a crucial point in ETH’s history pre-merge. The bulls must at least maintain the price above the $1740 support line to avoid a significant price drop. This would inherently have an effect on ETH’s price post-merge.
Crypto market cap is at $1.02 trillion according to the daily chart. Source: TradingView.com| Source: TradingView.com Featured image taken from Crypto News Chart by TradingView.com