The price of Ethereum Bitcoin as the two largest cryptocurrencies is followed by the trend of the market capitalization to the upside. The market is currently facing lower time frame resistance, but overall sentiment appears to have turned bullish across the board.
At the time of writing, Ethereum price is trading at $1,700 with a gain of 5% and 7% in the last 24 hours and 7 days, respectively. Meanwhile, Bitcoin is outperforming with a gain of 10% over the past trading session.
Which Ethereum Rally Could Preceed the Clash?
As previously reported by NewsBTC, Bitcoin and the crypto market were in a large pool of sell orders. The liquidity offering was in an uptrend following the price trajectory of Ethereum and other major cryptocurrencies.
It appears that the current price action is a collision between bullish and bearish forces with the first force taking over for the first time in weeks. For lower time frames, data from Material Indicators (MI) shows a total of more than $60 million in buy orders from various investor classes.
However, Ethereum price must remain above $1,6800 to maintain its current bullish momentum. Next week, the second cryptocurrency by market capitalization is going to have a major event with a “merging.” Below these levels, supply liquidity is running out and could trigger a rebound to previous support.
The event that will complete Ethereum’s transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus, “merging” is a highly anticipated event in the crypto market. Perhaps one of the main motivating factors for the current price movement.
Many believe that the price of Ethereum will run under the heading “Buy the rumor, sell the news event.” This could push the cryptocurrency price north of $1800 and possibly $2000 if the bulls can maintain the momentum.
What will happen to the price of Ethereum after the “merger”?
According to analyst Justin Bennett, the price of Ethereum could rise above $1800 if the bulls manage to clear the resistance between $1,740 and $1,780. This price action could occur after a “consolidation” and depending on the strength of the move, a retest of the lows around $1,500.
Bennett He said The following is on the current ETH price action:
(…) I don’t have a website here. I won’t enter before the weekend, and I’d rather look for shorts at the next higher high next week. This is probably a short dip if anything.