- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 meme coins: Dogecoin, PEPE, BONK lead meme rally amid growing disapproval from industry leaders
The meme coin sector rallied on Wednesday as top tokens, including Dogecoin (DOGE), PEPE and BONK, led the charge. With growing anticipation of a DOGE ETF in the US next year, industry experts weighed in on the future of investing in meme coins.
Ripple's XRP eyes rally to $2.58 as whales step up buying pressure
Ripple's XRP rallied 6% on Wednesday following increased buying pressure among whales in the past two weeks. The remittance-based token could stage a move to $2.58 amid increased institutional interest in the launch of an XRP exchange-traded fund (ETF) in the US.
Ethereum Price Forecast: ETH surges 10% with increased capital inflows, bulls set sights on $4,522
Ethereum (ETH) rallied 10% on Wednesday following increased capital inflows into ETH ETFs and a major uptick in its open interest and futures premium. If the bullish momentum sustains, ETH could overcome its yearly high resistance of $4,093 and rally to $4,522.
Biotech ETF (XBI) ended a diagonal: Looking for buying dips
The SPDR S&P Biotech ETF (XBI) is an exchange-traded fund that tracks the biotechnology segment of the S&P Total Market Index. This ETF allows investors to gain exposure to large, mid, and small-cap biotech stocks. If you’re interested in biotechnology, XBI could be worth exploring further.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.