Ethereum price recaptures $1,700, riding on the upcoming software upgrade

Ethereum price retains an ascending parallel channel despite a recent pullback to $1,530.
Ethereum Merge is expected between September 10 and 20.
A massive resistance around the 100-day SMA may delay the Ethereum price breakout.

Ethereum price is holding firmly to support at $1,700 several days after a significant slump from levels slightly above $2,000 to $1,530. This momentum ETH exhibit ascribes to an upcoming software upgrade called the Merge. Investors seem to be in unison about the Merge positively impacting Ethereum price – bringing relief amid obvious bear market uncertainties.

Ethereum developers confirm the Merge's official release dates

Ethereum's transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus is almost complete, with the Merge scheduled to take off in September. The Ethereum Foundation detailed the steps leading to the main event, starting with the Bellatrix upgrade on the Beacon Chain on September 6. This phase will be vital in kickstarting the Merge process ahead of the Terminal Total Difficult value expected to activate between September 10 and 20.

"The successful upgrade of all public testnets is now complete, and the Merge has been scheduled for the Ethereum mainnet. The Merge is a two-step process. The first step is a network upgrade, followed by the execution layer's transition from proof-of-work to proof-of-stake," the foundation disclosed.

What to expect from Ethereum price as the Merge approaches

The Merge will have a direct impact on the Ethereum ecosystem and an indirect influence on the larger cryptocurrency industry. Ethereum is the second-largest crypto asset and the largest smart contracts platform.

Miners are jittery because the upgrade renders their equipment useless to Ethereum. Thus, some will sell their equipment, while others will migrate to the original Ethereum Classic (ETC) blockchain.

Discussions regarding a chain split have been gaining momentum over the last few weeks. Some exchanges have vowed to support a new token dubbed Ethereum PoW Fork IOU (ETHW) in case of a successful hard fork.

In the meantime, Ethereum price is trading at $1,705 while sitting on an ascending parallel channel's lower boundary support. Reinforcing the same support at $1,700 is the 50-day Simple Moving Average (SMA) on the two-day chart.

ETH/USD two-day chart

The Directional Movement Index (DMI) reveals that bulls have the upper hand. However, a daily close above support at $1,700 would uphold Ether's uptrend. Due to the approaching software upgrade, Ethereum price may experience higher demand as investors position themselves, increasing the chances of a major move.

On the upside, Ethereum price must flip the seller congestion at $2,000 into higher support to protect the progress in the last couple of days. A break above the 100-day SMA at $2,189 would clear the path for a rally eyeing $3,000.

On the other hand, trading below the ascending channel, and by extension, the demand area at $1,700 could see Ethereum price change course to retest support at $1,530 before resuming its uptrend ahead of the Merge.

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