- 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
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.