This week’s whirlwind price swings continued in the crypto markets on Friday. Bitcoin, which had dropped to $27,000, rose to around $30,000. On the other hand, Ethereum, which had dropped to around $2,000, is now above this level.
Ethereum is Back Up $2K
After a break below the 200-day moving average line on Thursday, Ethereum rallied to a high of $2,100.80. The currency pair is currently 4.5% higher from its previous peak yesterday at $2054.8.
Like Bitcoin, the rise in Ethereum today is attributed to the bulls using the current floor of $1,950 as a starting point for their moves. ETH has slumped since reaching these highs in recent weeks, trading $20 below its earlier peak. In addition to passing the 35 RSI ceiling, now tracking above 36, the price is approaching hard resistance at $2,060.
Some of the earlier bulls may have already exited their positions. However, the bears are still expected to exert some pressure on the pair as we head into the week.
ETH Moving to $4K?
According to a technical analysis by Wolf, the price of Ether could reach $4,000 by 2022. This scenario is based on the formation of an ascending triangle pattern. The pattern comprises a rising trendline resistance and horizontal trendline support.
The price of Ether has recently tested its lower trendline, which could trigger a strong recovery. This move could lead to a move toward its upper trendline, around $4,000.
Wolf took his cue from the formation of an ascending triangle pattern in 2016 by analyzing the price of Ether. It followed a major bull run from $1 to $27. In 2017, another triangle formation occurred, which led to a significant rise of 270% to $1,500 in the price of ETH/USD.
The Merge’s Contribution
According to Wolf, the upgrade to the blockchain’s proof-of-stake consensus mechanism could happen in August. His analysis was based on a statement made by Preston Van Loon, one of the project developers.
Wolf noted that his technical setup could explain the bear trap that Ethereum was set up before the upgrade.
The upcoming upgrade was one of the main factors that drove the price of Ethereum in 2021. Many investors believed that it would improve the scalability of the blockchain and cut down on gas and transaction costs. However, the project’s organizers kept delaying the launch.
According to a research firm, the lack of progress on the upgrade could have contributed to the price decline of Ethereum. It noted that the price of the digital currency could drop to around $950 to $1,900 by October 2022.
The Crypto Market Slowly Recovers
Despite the continued price uncertainty in the crypto markets, Bitcoin was trading higher on Friday. After falling to a low of $29,389.44 during the previous session, the digital asset price rose by more than 3% to reach a high of 30,664.98. The move is considered a floor in the market, and it could lead to a stronger higher move.
The price action of the XRP is similar to that of Ethereum, with a higher low and a stronger bullish trend. If this momentum continues, it could challenge the resistance at around $0.56. Today, Cardano also made a significant crossover with its daily MACD indicator. The price action is relatively positive, and it may attempt to test the key resistance at $0.60. For the week, the company’s price has increased by 13.7%.
Meanwhile, the global cryptocurrency market cap is currently at $1,24T, a 3.53% decrease from its previous day. Over the same period, the total volume of all cryptocurrencies traded has decreased by 11.66% to $80.24B.