We are currently a day and a few hours away from The Merge. Will the price of the second crypto in terms of market capitalization go up following this? This is very likely given the positive points brought by this migration of Ethereum (ETH) from PoW to PoS. This is why we are going to do a chart analysis together on the price of ether (ETH) before The Merge.
Chart analysis on Ethereum (ETH): A bullish channel?
Ethereum is in a long term uptrend. This is very visible by applying the two largest timescales (monthly and weekly).
Indeed, ETH remains over 1800% off its 2020 low ($84.61). This, despite a fairly substantial loss in value (-80%) since its historic high.
Also noteworthy is the fact that this crypto is currently hovering around the January 2018 high ($1529).
Then, to have a more precise vision in our chart analysis on Ethereum (ETH), let’s go down to the “Daily” and “H4” timeframes. The first thing that catches your eye? The second crypto by market capitalization is moving in a bullish channel. This rise began in July 2022 where ETH rebounded from the bear market. Since then, the eternal rival of bitcoin (BTC) has gained 60% in value. It will therefore be necessary to monitor the reaction of the price of ETH to the two trend lines that form this channel.
On smaller time frames (H1 and 30 mins), ETH is bearish. Nevertheless, its price is still evolving in the bullish channel from earlier. But the shoulder-head-shoulder pattern that has formed since July 27 should not be overlooked. So, based on this, we can say that this crypto will not be bullish for a while. It could also be that this dip is nothing more than a way for her to reach DIP.
What are the levels to monitor?
After some research, you are now convinced ofto buy of ether (ETH) before The Merge. However, you don’t know at what level to place the buy order. We therefore offer you these key levels to monitor.
First, the area around $1530 seems to be relevant. Indeed, this is a level where the price has touched several times in its history. It is therefore a major support and resistance zone. It could then be that the price touches this zone again before exploding upwards.
Next, watch the level around $1280 as well. This is a major resistance for Ethereum during the months of June and July. Thus, once it is broken, the price could return to it and then rebound with a large volume. In addition, this level is right below $1357, an important turning point. Because of this, it is highly likely that there are a lot of buy orders around this area ($1280). Other areas are also to watch like the one between $1100 and $1000.
Ethereum (ETH) will migrate to the Proof-of-Stake network shortly. As a day trader, you can take advantage of this event. However, the level of volatility would likely be increased there. Therefore, a chart analysis on Ether (ETH) is necessary if you want to profit from it.
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