Ethereum rallied from the hype generated by the Merge announcement. Although this is recent news, ETH already hit the $2,000 mark after the bearish July market.
After over a month of price increases, ETH’s price closed in on the $2,000 mark. One of its highest since the entire crypto market crashed. However, the most recent rally has placed confidence in investors and traders alike.
The Highly-Anticipated Merge
The rally was because of the recent ETH Merge announcements that has been the talk of crypto traders around the world. This move, according to Ethereum co-founder Vitalik Buterin, will bring efficiency to the network and reduce overall carbon footprint.
These types of announcements however boost the confidence of traders and investors pushing the price up.
As of this writing, ETH is oscillating at ranges $1,718.41 and $1,791.76. The token is also trying to entrench itself on the 78.60 percent in the Fib retracement.
Ethereum Bulls Try To Breach Resistance
The recent support is set at $1,740.63 with the resistance at the $1,802.12. The bulls have consistently tried to target $1,802.76 resistance to continue the rally.
But as the graph shows, the rally has stagnated and the bull now tries to consolidate the position.
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. But the indicators say otherwise.
The CCI and Stochastic RSI numbers indicate a slow down in trend price. As of writing, the CCI is at 16.69 and Stoch RSI at 16.17 indicating a small sell-off movement.
If the bulls manage to gain momentum once again, then the price might jump and pierce to the next resistance level at the 61.80% Fib level. If the price goes down however, we can expect the support to be at the $1,662.31 range.
This is a crucial point in ETH’s history pre-merge. If the bulls fail to at least consolidate the price at the $1,740 support line then there will be a large chance for a downward price reversal. This would inherently have an effect on ETH’s price post-merge.
Crypto total market cap at $1.02 trillion on the daily chart | Source: TradingView.com Featured image from Crypto News, Chart from TradingView.com