Ethereum rose from the hype generated by the merger announcement. Although this is recent news, ETH has already reached $2000 after the July bear market.
After more than a month of price hikes, the price of ETH closed at the $2,000 level. One of the highest levels since the entire crypto market crash. However, the recent rally has put confidence in investors and traders alike.
The rally was due to the recent ETH Merge announcements that have been the talk of cryptocurrency traders around the world. This move, according to Ethereum founder Vitalik Buterin, will bring efficiency to the network and reduce the overall carbon footprint.
However, these types of advertisements boost the confidence of traders and investors who push the price higher.
As of this writing, ETH is oscillating at the $1,718.41 and $1,791.76 ranges. The symbol is also trying to establish itself at 78.60% in the Fibonacci retracement.
Ethereum bulls are trying to break through the resistance
The last support was set at $1,740.63 with resistance at $1,802.12. The bulls have been constantly trying to target $1,802.76 as resistance to continue rising.
But as the chart shows, the rally has stagnated and the bull is now trying to consolidate the position.
Two things may happen while the price of ETH is stabilizing; (1) The resistance will be breached a day later and it will rise again, or (2) The price breaks the $1,740 support and falls.
If the price breaks the 61.80% Fibonacci level, the bulls will gain momentum and could reach $2000 in a few days. But indications say otherwise.
The CCI and Stochastic RSI numbers indicate a slowdown in the trend price. As of this writing, CCI is at 16.69 and Stoch RSI at 16.17 indicating a small selling move.
If the bulls can gain momentum again, the price may jump and break the next resistance level at the 61.80% Fibonacci level. However, if the price declines, we can expect the support to be in the $1,662.31 area.
This is a crucial point in the pre-history of ETH consolidation. If the bulls fail to at least consolidate the price at the $1,740 support line, there is a high chance of a bearish price reversal. This will inherently have an impact on the price of ETH after the merger.
Crypto total market cap at $1.02 trillion on the daily chart | Source: TradingView.com Featured image from Crypto News, Chart from TradingView.com