Ethereum price on track for massive breakout as network prepares for “The Merge”
- Ethereum price crossed $3,000 as the community prepared for the milestone update, the merge on the ETH mainnet.
- As the proof-of-stake transition draws closer, a total of $5 billion Ethereum tokens have been burned.
- Analysts believe Ethereum is poised for a 20% upswing, following a bounce in the altcoin’s price.
Ethereum price could post 20% gains in the current uptrend. The community is keen on the arrival of the long-awaited upgrade on the Ethereum mainnet. Analysts have noted a bounce in the Ethereum price trend and predicted a bullish outlook on the altcoin’s price.
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Ethereum price ready for 20% upswing ahead of major upgrade
Ethereum price is set up to break out of a long-term bearish trend line, according to crypto analyst Willy Woo. Woo argues that Ethereum price was on a bearish trend for over three and half months, and the altcoin is on track for a trend reversal.
The merge, considered a milestone event on the Ethereum mainnet, is drawing closer after its arrival on the testnet. There is a spike in Ethereum tokens being burned ahead of the upgrade. Over $5 billion in Ether has been pulled out of circulation through the implementation of the burn.
Previously, the EIP-1559 was considered a key upgrade in the Ethereum ecosystem, as it worked towards introducing predictability and stability in transaction fees. Proponents argue the merge could put deflationary pressure on Ethereum.
As burn reduces the overall supply of Ethereum, it could positively influence the price, fueling a rally in the altcoin.
Analysts have evaluated the Ethereum price trend and predicted a trend reversal in the altcoin. Michaël van de Poppe, a crypto analyst and trader, believes that Ethereum price could hit highs at around $3,000.
Good bounce on #Ethereum here, which makes it likely that we're going to take the highs around $3,000.
— Michaël van de Poppe (@CryptoMichNL) March 21, 2022
Question will be how strong we're going to move from there; immediate rejection and we're at the highs of this relief rally.
Crucial support; $2,800. pic.twitter.com/4FqIhNBFJs
FXStreet analysts argue that an Ethereum price close above $3,033 could result in an ideal Ichimoku bullish breakout for the first time since October 2021. Analysts predict a 20% upswing in Ethereum price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
