Ethereum has recovered from the hype generated by the merger announcement. While this is recent news, ETH has already reached the $2,000 mark after the July bear market.
After more than a month of price increases, the ETH price closed at the $2,000 mark. One of the highest since the entire cryptocurrency market collapsed. However, the latest rally has put confidence in investors and traders.
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The long-awaited merger
The rally was due to the recent ETH Merge announcements which have been the talking point of cryptocurrency traders around the world. This change, according to Ethereum co-founder Vitalik Buterin, will bring efficiency to the network and reduce the overall carbon footprint.
These types of announcements, however, increase the confidence of traders and investors, driving up the price.
At the time of writing, ETH is hovering in the ranges of $1,718.41 and $1,791.76. The token is also trying to consolidate at the 78.60% Fibonacci retracement.
Ethereum bulls try to break resistance
Recent support is set at $1,740.63 with resistance at $1,802.12. The bulls have consistently tried to reach the resistance at $1,802.76 to continue the rally. But as the chart shows, the rally has stalled and the bull is now trying to consolidate the position.
Two things can happen as the ETH price stabilizes; (1) the resistance will break through on a later day and go back higher, or (2) the price will break the support of $1740 and go lower. If the price breaks above the 61.80% Fibonacci level, the bulls will gain momentum and could reach $2,000 within a few days. But the indicators say otherwise.
The CCI and Stochastic RSI numbers indicate a slowdown in the price trend. At press time, the CCI is at 16.69 and the Stoch RSI is at 16.17, indicating a small selloff.
If the bulls manage to gain momentum once again, the price can bounce and move to the next resistance level at the 61.80% Fibonacci level. However, if the price turns down, we can expect support to hold in the $1,662.31 range.
This is a pivotal point in the pre-merger history of ETH. If the bulls fail to at least consolidate the price at the $1,740 support line, there is a high probability that the price will reverse lower. This would have an inherent effect on the post-merger price of ETH.
Crypto total market cap at $1.02 trillion on the daily chart | Source: TradingView.com Featured image from Crypto News, Chart from TradingView.com
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