The major cryptocurrencies have been slowly rising, recovering slightly from the massive losses experienced in April. Ethereum has gained a respectable 100% since its low point in June. During the week, the ETH/USD price started a fresh increase above the $1,700 resistance to move into a positive zone. Although Ether is considered to be more volatile, its current rally is being driven by more than just a rebound in broader risk assets. On September 19, the blockchain-based platform that handles Ether payments will receive a major upgrade when the network merges with Beacon Chain, replacing the existing proof-of-work (PoW) system with a proof-of-stake (PoS) mechanism. However, a famous Ethereum miner has found crucial support in the fight against the merge and now plans on forking ETH. Chandler Guo, a miner, and Ethereum merge critic, initiated a campaign last week to oppose the network’s impending and much-anticipated shift to Ethereum 2.0 and proof of stake. Guo intends to hard fork the Ethereum network if it transitions to proof of stake next month, resulting in the creation of ETHW, a spinoff, proof-of-work version of the network.
Key Levels
Resistance Levels: $2,500, $2,300, $2,000
Support Levels: $1,700, $1,500, $1,300
ETH/USD Daily ChartThe price of ETH/USD has returned above the $1,700 level once again after reaching $1,792 on July 28. If the positive momentum continues, the $2,000 level will most likely be targeted before attempting to break through the extremely packed zone of $2,300. A new psychological level is building near $1,700. On the daily chart, the pair might move to sustain the move if it closes above $1,700.
The initial support is approximately $1,650 around the 4-hour moving average (MA 50), above which the second support zone forms at $1,500. If the pair breaks below the $1,600 support level, it may fall to the $1,500 level. The odds favor the bulls if the ETH/USD pair ends the week above $1,700. A more sustained rise is possible if prices remain over $1,750.
ETH/USD 4-Hour ChartOn the previous day, the price of ETH/USD broke through the horizontal resistance of $1,700. However, the price almost immediately encountered resistance at $1,750, keeping the number two cryptocurrency in a range till now. Although the price is approaching its short-term resistance level of $1,800.
If the 4-hour moving average (MA 50) is broken, the price might go below the horizontal zone at $1,600 before aiming for the lower line of a channel down pattern near $1,500. Meanwhile, the RSI’s ranging condition may result in a brief retreat. Overall, sentiment will stay positive as long as the price action is over $1,500.
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