The second highest cryptocurrency by market cap, Ethereum, is down 3% but still above crucial support levels of $3,000. Santiment, an on-chain data provider, reports that Ethereum’s address activity has picked up this week, with Wednesday’s 592k unique interactions marking the highest level in over a month. In addition, $ETH social discussions have risen to their highest levels in over two months.
ETH Upgrade is Highly Anticipated
The broader cryptocurrency market has been under pressure. In the past 24 hours, the global crypto market cap has decreased by 2.19% to $1.88T. A total of $107.01B has been traded in the crypto market within the same time, increasing 16.88%.
The upcoming Ethereum Merge will be a significant event for the blockchain industry. With the PoS transition just around the corner, many analysts expect the crypto to reach $10,000.
Investors expect the price of Ethereum to recover from its recent decline. Developers have already completed the first test of the project, the mainnet shadow fork. Developers believe that the successful completion of the second upcoming test will boost the cryptocurrency’s price as the project is close to its transition from a proof-of-work to a proof-of-stake (PoS).
According to experts, the increasing number of addresses with over 10,000 ETH in the network signifies that the PoS transition is gaining momentum. It could lead to a significant increase in the buying pressure.
ETH Price Analysis
This week, Ethereum remained heavily bid and rose beyond the $3,080 barrier level. Even more impressive, ETH broke over the $3,130 resistance zone and settled above the 100 hourly simple moving average.
It even surged up to $3,180 and traded as high as $3,172. A recent negative slump occurred below the $3,130 mark. The price of ether fell below the 23.6 percent Fib retracement level of the upward run from the swing low of $2,880 to the high of $3,172.
The price tested the \$3,050 support level and the 100 hourly simple moving average. On the hourly chart of ETH/USD, a significant bullish trend line is forming with support at $3,080. On the upside, an early resistance level was seen near $3,130. The next significant resistance is between $3,170 and $3,180. In the short term, closing over $3,180 might signal the commencement of a significant rising trend. In the above scenario, ether may grow to around $3,250. Near $3,280 or $3,320, it might find the next substantial resistance.
What is Coming?
Bulls performed a classic-long entry today by opening Ethereum price above the pivot and then testing the pivot for support before rallying from there. The current rally in the Ethereum price might continue as the Relative Strength Index moves upwards. The buy-side volume is not overwhelming could put the index in the overbought territory and scare new investors away.
As a result, ETH might stage an additional upside in the following weeks. However, Ethereum has to observe the psychological levels of $3,200, $3,3000, and $3,400. These levels will act as a push to the run-up to $3,500.
The RSI is not indicating a positive increase, which might imply the potential of a bull trap with buyers failing to hold price-action above the monthly pivot. Bears would wait for a breach below the monthly pivot before attempting to push price action down towards $3,000 at the 55-day SMA. If that happens, the price may plummet to $2,695, a decrease of 12 percent overall.