- Ethereum price struggles around the $1,730 support level after a 25% ascent.
- A revisit of the $2,000 psychological level on the back of the Merge hype seems plausible.
- A daily candlestick close above $2,034 will create a higher high and invalidate the bearish thesis
Ethereum price is retesting the recent flipped significant support level and could potentially rally much higher before taking a U-turn. This countertrend movement could be attributed to the hype around the upcoming software upgrade to ETH’s beacon chain, termed the Merge.
An anonymous developer revealed that the Ethereum blockchain wil become vulnerable around the time of Merge, which is scheduled to occur in under three days. The developer adds,
If you control two consecutive blocks, you can start an exploit on block N and finish it on block N+1 without having any arbitrage bot coming in and fixing the price that you have manipulated in between.
Regardless, Ethereum price looks strong from a technical perspective while altcoins show weakness. Investors need to prepare for more volatility over the next 24 hours potentially due to the impact of the inflation data announcement on September 13.
Ethereum price waits for an opportune moment
Ethereum price followed Bitcoin’s path and rallied 25% in roughly two weeks. Interestingly, the return over the aforementioned period for ETH was higher than Bitcoin. During its ascent, ETH flipped the $1,730 resistance level into a support floor in an attempt to retest the imbalance at $1,820, or Fair Value Gap (FVG), as it is also known.
However, it fell short and is currently undergoing a minor retracement. Investors should note that with the Merge, scheduled in under three days, there might be a quick resurgence in buying pressure.
In such a case, investors should consider the possibility of ETH disagreeing with the larger market trend and revisiting the $2,000 psychological level. This move could potentially form a local top for ETH and trigger the start of a downtrend.
Based on the current price action, a breakdown of the $1,730 barrier could result in a straight drop to $1,290, which is a significant support level.
ETH/USD 1-day chart
While things are not looking so good for Ethereum price, a daily candlestick close above $2,034 will create a higher high and invalidate the bearish thesis. This development could see ETH revisit the $2,200 and $2,500 hurdles, respectively.
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
Lido DAO announces new phase on Ethereum with Simple DVT module
Lido DAO voted on the deployment of the Simple DVT module nearly six months ago, it is ready for mainnet as of April 17. Simple DVT helps to make Lido’s technology accessible to more users. LDO price is down nearly 3% in the past day.
New altcoins crash and burn, but this altcoin shows strength Premium
Binance Coin price shows a bullish pennant continuation pattern. BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin. The altcoin could see a massive gain with the upcoming BEP-336 upgrade.
Cronos price fails to recover despite network upgrade
Cronos (CRO) is an Ethereum Virtual Machine (EVM) compatible chain in the Cosmos ecosystem. A mainnet upgrade was completed early on Wednesday and the asset’s price declined nearly 2% in the past 24 hours.
XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.