Will Ethereum Merge Finally Spike ETH Price Toward $2,000?

Ethereum Merge is happening soon as can be seen in the recent ETH price action. ETH extends the previous sessions’ gain and turns north. The second largest cryptocurrency by market value looked set for a renewed price rally as the Ethereum Merge is coming ahead.

Ethereum price analysis remained positive for today.

What is the Ethereum Merge

The Merge is a technical upgradation that will change Ethereum’s existing proof-of-work consensus mechanism to a proof-of-stake model. With the aim of improving scalability and reducing its carbon footprint. The Merge is a part of a series of major Ethereum ecosystem upgrades.

• Ethereum price extends the gains for the second straight day.
• More gains can be estimated if the price closes above $1,700.
• Bullish formation on different time frames attracts side-lined investors.

Ethereum price looks for a positive reversal

On the daily chart, the Ethereum price retraced from the swing high of $2,031.39 to the lows of $$1,423.85. The mentioned low level is a crucial level to hold. As this formed a short-term critical support zone.

Taking support from $1,420 ETH gained more than 17% above $1,650. Currently, the price hovers near a short resistance barricade as it faces multiple rejections at this level. However, this time we expect the price would pierce this upside filter.

As the double bottom structure is near $1,420, adding to the first upside argument. Due to additional buying pressure, the price moved up the 50-day exponential moving average at $1,614.

A daily close above $1,700, could be possible following the previous three candlesticks. A daily candlestick above $1,700 would make the upside probability more feasible.

We expect the sustained buying pressure would meet the August 26 high of $1,706.41 followed by the psychological $2,000 level.

On the other hand, a slippage below the 50-day exponential moving average means the price could drop toward $$1,550.

The RSI (14) trades above the average line with a bullish crossover. Currently, it reads at 52.

On the 4-hour chart, the price is trading along with the ascending trendline from the lows of $1,420. The upside paused near the horizontal resistance zone for around $1,680.

Also read: Breaking: Ethereum Co-Founder Vitalik Buterin Says The Merge Is Coming Sooner

We expect a little bit of price correction due to the resistance, an additional buying pressure with new buying participants could provide the upthrust. If that happens, there could be a wild swing movement toward $1,800.

On the flip side, a break below the bullish trend line could mean a price reversal toward $1,550.

As of press time, ETH/USD is reading at $1,665, up 2.93% for the day.