Ethereum prices are following Bitcoin in the market capitalization trend towards the upside. While the market currently faces low resistance over the short term, general sentiment appears to be bullish.
The Ethereum price is trading at $1700 as of the writing. There has been a profit of 5% and 7.7% in the past 24 hours, and seven days respectively. Bitcoin has a profit of 10% over the last trading session.
This Could Be The Ethereum Clash Preceded by A Rally
NewsBTC previously reported that Bitcoin was coming in large numbers of sell orders. Following the trend of Ethereum’s price, and the other major cryptocurrency prices, ask liquidity was on the rise.
Current price action appears to be an uneasy clash of bearish and bullish forces, with the latter taking over for the first week in a row. Material Indicators (MI), which tracks buy orders for different investors classes, shows that they have received over $60 million of them in low timeframes.
For Ethereum to continue its bullish momentum, it must stay above $16800. In the coming week, the second crypto by market cap will go through a major event with “The Merge”. If bid liquidity drops below these levels it could cause the market to lose support.
The event that will complete Ethereum’s transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus, “The Merge” is a highly anticipated event in the crypto market. It is likely to be the key catalyst in the current price action.
Many believe the Ethereum price will operate under a “buy the rumor, sell the news event”. The price of Ethereum could rise to as high as $1,800 (or even $2,000) if the bulls maintain their momentum.
What Will Happen To The Ethereum Price After “The Merge”?
Justin Bennett analyst, believes that Ethereum’s price could rise above $1800 if bulls overcome resistance of $1,740 to $1,780. This price action might take place after “The Merge” and depending on the strength of the move, a retest of the lows at around $1,500.
Bennett said the following on the current ETH’s price action:
(…) I have no position here. I’m not going to enter before the weekend, and I’d prefer to look for shorts on the next higher high next week. It’s probably just a short pullback.