Strong technical indicators for the price of ethereum suggest that the bull run might only be beginning.
Ethereum Has Bottomed?
Ethereum [ETH] has had a recovery over the previous five days from its month-long demand zone in the $1,049 range. As a result of the recent run of green candlesticks, ETH is now under bullish control for the immediate future.
At this time, the price of ethereum is $1,563. In response to the bear’s year-long suppression, the bulls are indicating a fierce retaliation. If the bears are unable to halt the bullish trend, ETH price will likely continue increasing towards $1,650. It has set a big objective mark at $1,450.
ETH/USD trades at $1,563. Source: TradingView
ETH lost more than half of its value in just nine days when it was in its previous downturn phase (from 10 June). As a result, on June 19, the alt drew closer to its 17-month low.
However, the bulls promptly confirmed the $1,049-zone demand zone and promoted an up-channel (yellow) resurrection in the 4-hour timeframe. As a result of the increased bullishness, the 20 EMA (red) moved above the 200 EMA (cyan).
The bears may attempt to test the $1,390 level again if they recover from the 61.8 percent level. A further breakdown from the up-channel could lead to a retest of the 20 EMA to the north before a likely recovery.
Investors who took part in the bullish knife-catching trading setup from last week are 35 percent in the black. At $1,304, bulls looking to join the market would be invalidated. The price of Ethereum might drop by 45 percent if the bears break through this barrier and proceed to tumble toward $970.
Related Reading | TA: Ethereum Outpaces Bitcoin, Why ETH Could Rise To $1,500
Is Merge Pushing Price?
Since the Merge schedule was made public, trading activity in the ETH market has increased. Podcaster Luke Martin claimed in a tweet that the price spike was prompted by the news of the ETH merger.
“The ETH merge trade begins: ever since the merge timeline update it has outperformed.”
Merge’s schedule might still be extended past the predetermined date, though. This mostly depends on how well the Goerli merging is implemented. Crypto VC expert Haseeb Qureshi predicted that the merge timeframe would be delayed.
Related Reading | Liquidations Cross $230 Million As Ethereum Barrels Past $1,400
Featured image from iStock Photo, charts from TradingView.com