Ether (ETH) is still having difficulty clearing the hurdle of The Merge. Could the price break through this level? Given the magnitude of the current bullish momentum, it is quite likely. Discover this morning analysis of February 09.
Ether (ETH): back below The Merge
For the past 7 days, ether (ETH) has briefly crossed the resistance of The Merge. But with yesterday’s pullback, the price is back below that $1638 level. This crypto therefore oscillates around this critical obstacle, the breakout of which could be decisive. Indeed, the bulls still do not have enough strength to definitively cross this zone. As a reminder, after the passage of Ethereum in the PoS network, ether (ETH) never rose above $1750. This is why the breakout of this opening price of The Merge would be a very relevant bullish signal.
Then, after touching the 23.6% fib level last week, the price closed in the red yesterday. This confirms our bearish scenario during the February 07 analysis. Following this logic, we could consider further declines today. In addition, it should be noted that the market tends to reach the low of the week on Thursday. Thus, we will rather bet on a long position on ether (ETH) after the price has reached its low of the week.
About to create the trough of the week?
We remain bullish on ether (ETH) since the bullish momentum since the start of the year could continue. It remains to find the ideal entry point for a short-term long position.
The demand zone (around $1575) that lines up with the 78.6% fib level looks like an interesting entry point. Indeed, there is a strong upward momentum in this area. This created a bullish engulfing on ether (ETH). Thus, we will therefore bet on a scenario where the price goes down to this level by creating the trough of the week. After that, ETH could be expected to rise above $1800. So, here is the summary of the setup in question:
- Entry point: $1570
- Stop-loss: $1530
- Goal 1: $1800
- Goal 2: $2,000
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