Ethereum is moving higher over today’s trading session and seems to be targeting previous levels about the $2,000 mark. The cryptocurrency soars as “The Merge” becomes imminent and backs the bullish sentiment across the market.
At the time of writing, ETH’s price trades at $1,900 with a 3% profit in the last 24 hours and a 17% profit over the past week. Ethereum has the highest performing crypto asset by market capital. This is more than Solana (14%) or Polkadot (16%) nor Bitcoin (7%)
It seems that the bullish momentum in Ethereum is set to continue. In a recent ETH core developers calls, “The Merge” mainnet release was tentatively scheduled for September 15 to 16 at epoch 144896.
This announcement comes at the heels of a successful implementation of “The Merge” on another main Ethereum testnet, Goerli. Called the final “dress rehearsal” for this major upcoming event that will combine Ethereum’s execution layer with its consensus layer.
This means that Ethereum will complete the transition from being a Proof of Work consensus to becoming a Proof of-Stake. This will result in a blockchain with better performance and lower transaction fees. It will also allow for greater scalability and energy conservation.
The potential for “The Merge” to attract new users and capital into the Ethereum ecosystem is one of the reasons why it’s perceived as bullish by the market. Data from Material Indicators (MI) indicates that almost every investor class has been buying into ETH’s price current price action.
This buying pressure has been trending up and seems to have gained momentum in the last 12 hours, as more news was released about the tentative release date of the mainnet.
Further data from Material Indicators records important ask liquidity above ETH’s price current levels. Selling orders totaling over $40,000,000 range from $1920 to $2,000. These orders can be used as critical resistance.
What “The Merge” Could Spell For The Price Of Ethereum
The orderbook records almost no resistance to Ethereum’s upside if Ethereum can break through these levels. Thus, ETH’s price could reclaim previously lost territory and extend its climb.
However, MI records low buying pressure for ETH’s price on higher timeframes from large investors. Over the past two months, retail investors appear to be jumping into Ethereum’s price action.
Jarvis Labs also provided additional data that shows retail investors have been investing in ETH. Larger investors need to begin accumulating to provide ETH’s price with an extended trend.
Jarvis Labs believesIf Bitcoin continues its bullish trend and gains momentum, this could trigger a sustained bullish price move. The price of the number one cryptocurrency has also been supported mainly by retail, but the research “would like to see a Q4 2020 repeat”.
At the time, retailers were buying BTC/ETH. Q4 saw the arrival of whales and prices reached new heights.
