The majority of top cryptocurrencies, including Ethereum, are on track to have their best month since 2021 due to a return of risk appetite in global markets and anticipation for the Ethereum “Merge” upgrade. This speculative interest in Ethereum is being driven by the anticipated deflationary effects of the switch from PoW to PoS, which increases its upside whenever cryptocurrencies are rallying. ETH began a fresh recovery above the $1,500 zone, followed by a climb above the $1,700 resistance, but is now confronted by waning upside traction. At the time of analysis, the ETH/USD price is currently hovering at $1.7k, up 13% in the prior week. The cryptocurrency’s value has increased by 56 percent in the last month. A new timeline for the last testnet “Merge” upgrade has been shared. These details were revealed on July 28 by Tim Beiko, the lead developer on Ethereum. He claims that the Goerli testnet, a near simulation of the Ethereum mainnet, will be used for the testnet transition. In this case, Goerli and Prater will merge, but the resulting network will continue to be known as “Goerli” after the Merge. Prater will run through the Bellatrix upgrade on August 4th and merge with Goerli between August 6th and 12th.
Key Levels
Resistance Levels: $2,500, $2,300, $2,000
Support Levels: $1,500, $1,300, $1,000
ETH/USD Daily ChartThe price of ETH/USD reached a six-week high of $1,792.55 as of mid-week, as can be seen on the daily chart. The $2,000 level will likely be the next target if the upward trend continues, followed by the widely congested $2,500 area. There is an immediate upward resistance near the $1,700 level.
The daily MA 50, which is aligned with the psychological region of $1,300, could be approached by a sharp selloff in ETH/USD. A break below might open the door to the $900 support area, which held the price back in June, while further drops could hit the $500 level if they are strong.
ETH/USD 4-Hour ChartSince July lows of $1,005, the ETH/USD pair has been slowly climbing, and the rebound trend is still going strong. A short-term consolidation perspective is also supported by the pair’s ongoing trend higher as well as the most recent bounce off the 4-hour moving average (MA 50).
Additionally, supporting a positive bias are short-term momentum indicators. The short-term moving averages are widening and the RSI remains over its neutral 50 mark, all signs that momentum is still building. This may indicate that the optimistic bias is starting to strengthen again.
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