Ethereum (ETH) price has continued to trade higher for the past several days, after a dramatic reversal from the previous low near $1,000 over the past seven days.
Wednesday saw the ETH/USD pair climb to the $1,175 barrier, hitting a clear high. As of this writing on Thursday, ETH is trading at $1,218 — a 10.6 percent increase over the previous week, according to data from Coingecko.
The data showed that the announcement of the successful implementation of The Merge by Ethereum developers on the Sepolia testnet led to a 5 percent increase in the price of Ether over the past 24 hours.
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Ethereum gets some power from consolidation
The merger will facilitate the transition of the Ethereum network to a Proof-of-Stake (PoS) network. Proof of Stake protocols are a type of consensus mechanism of blockchain networks that select validators in proportion to their corresponding cryptocurrency holdings. This is implemented in order to circumvent the computational expenses of Proof of Work techniques.
The world’s second largest cryptocurrency came under intense selling pressure earlier this week. Since early April, the bears have completely dominated the market.
The $1,000 support has prevented further declines in Ethereum price over the past week. The question now is whether or not a short-term rally is possible.
In recent months, Ethereum (ETH) and the broader cryptocurrency market have been operating in an environment characterized by hyperinflation, as the United States Federal Reserve takes steps to implement high interest rates.
ETH total market cap at $146 billion on the daily chart | Source: TradingView.com
Ethereum Next Target: $1250
With fears of an economic slowdown intensifying, riskier assets like Ethereum were hit hard, with ETH temporarily dropping below the $1,000 support area just last month.
Thursday’s Ethereum price analysis is bullish, with money managers anticipating additional gains after the consolidation ended and a breakout above $1,175 occurred. Hence, the ETH/USD pair is expected to continue rising and approach the $1250 resistance level.
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Despite the significant drop in the price of Ethereum since the beginning of the year, the CoinMarketCap community expects that the decentralized currency will trade at an average price of $2,529 on July 31, 2022.
Meanwhile, Ethereum price analysis today is positive, as overnight gains continued above the $1,175 resistance. Hence, ETH/USD is likely to continue rising and aim for the $1250 resistance. If this level is breached, we expect a very bullish trend for July.
Featured image from Mashable, chart from TradingView.com