Ethereum Picks Up a Rally as the Merge Draws Closer
Ethereum’s current trading activities are on the high, and bulls seem to be targeting the $2,000 mark. The cryptocurrency’s bullish momentum continues to build as “The Merger” is expected to cause a massive shift in the market.
Ethereum Is Rallying
ETH is currently trading at around $1,894. It has gained 4% in the last 24 hours and 17% in the previous week with the bullish momentum expected to continue. During a recent developer call, the team confirmed the mainnet release of “The Merge” was for September 15 to 16.
Following the successful implementation of “The Merge” on Goerli, a major testnet for Ethereum, the company announced the final dress rehearsal for this upcoming event today. After transitioning from a Proof-of-Work to a Proof-of-Stake, Ethereum will finally be able to provide its users with better performance and lower transaction fees. This process will also help the blockchain reduce its energy consumption and improve its scalability.
The potential of “The Merge” to attract more capital and new users into the Ethereum ecosystem is also one factor contributing to the company’s bullish market sentiment. According to data from the Material Indicators, almost every investor class has bought into ETH.
The buying pressure has increased steadily over the past few days due to the news about the mainnet release’s schedule. According to data from the Material Indicators, there is over $40 million worth of selling orders in the market. These orders will act as critical resistance.
What “The Merge” Means For ETH
If Ethereum’s price breaks above the key resistance levels at around $660 and $670, the orderbook will likely no longer be able to resist the upside. This move could lead to a significant increase in the price. However, the MI of large investors tends to record low buying pressure for the price of ETH on higher time frames.
Over the last two months, retail investors have started to enter the market recently. According to data from Jarvis Labs, retail investors have been accumulating ETH. Large investors also need to begin accumulating to provide an extended trend for the price of ETH.
Jarvis Labs also notes that Bitcoin’s sustainable bullish trend could only be triggered if the cryptocurrency price continues to rise. Retail support has also been contributing to its price, though the firm believes a repeat of the bullish trend in the fourth quarter of 2020 is possible.
Sentiment Turning Green
The sentiment in the crypto market has been on an upward trend since the start of the year. When the price of bitcoin hit its first record high of around $24,200, the market sentiment started to move out of the extreme fear territory.
Despite the market’s recovery, the Fear & Greed Index remained low. However, on Wednesday, the market’s recovery saw a significant increase, with the score rising to 41. That was the biggest one-day gain for the year 2022. Throughout the day, the index had been trending around 31.
The level of 41 puts the market sentiment at the closest it has been since the crash. It also marked a significant contrast to the previous week’s score, which was 16.
The reversal in the market’s trend shows that investors are starting to return to the market. This move is also beneficial for the growth of cryptocurrencies as it allows for stronger accumulation trends.
Bitcoin is currently trading at $24,300. It has gained 2% in the last 24 hours and is showing green closes on the previous two days. A close above this level on Thursday would indicate that the price is about to hit a peak of $28,000.
