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The second crypto by market cap continued its bull run over the weekend with a 4.3% gain on Saturday. With this rise, Ethereum regains its opening value on The Merge day. However, the price could not overcome this level around $1639. This caused a drop of 1.9% on Sunday. Could we finally envisage the bullish rally of Ethereum after the Merge? Check out this analysis.

The fall in value of Ethereum (ETH) after The Merge

After the completion of The Merge, ETH lost nearly 24% of its value. A situation that surprised the crypto community. Indeed, Ethereum’s migration from Proof-of-Work to Proof-of-Stake should have exploded its value, but it didn’t. After the fall, the value of Ethereum remained stuck between $1220 and $1367. It was only last week that its price was able to break out of this zone. Following this breakout, ETH experienced several days of bullishness. Which led its price to break above the three-month-old descending channel. Subsequently, its value approached the day’s opening price of Merge.

Currently, Ethereum is slightly below that crucial $1638 level. It could be that the price of the eternal second falls again. Indeed, this level is very close to a fairly relevant resistance. This is the $1660 area. Moreover, this hurdle also lines up with the 200-day moving average which could be a major resistance. This will cause a pull-back to the nearest support.

Ethereum (ETH) recovers its value before The merge
ETH/USD – Ethereum (ETH) recovers its value before The merge – TradingView

A pull-back before the bull-run?

We could envisage a bullish rally for Ethereum once this opening price before the Merge is exceeded. But before that, a real battle between bulls and bears will certainly play out around $1638. From our perspective, it is highly likely that the bears will first drive the price of this crypto into a pullback. This is because the RSI is currently in the overbought territory. Which means buyers are starting to lose steam. Thus, one could consider a retracement towards the nearest support level.

This “correction” will drive the value of Ethereum to the upper right of the descending channel. Note that this line also lines up with key support: $1,367.83. But not only that, it seems that the 50-day moving average is also near this level. Thus, this is an ideal level for buyers to push the value of Ethereum towards a bull-run.

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