Ethereum’s price, at press time, was picturing an interesting setup after its latest crash. ETH seemed to be hovering above a crucial support area, one that prevented a further increase in selling pressure by absorbing it. Therefore, interested investors can start accumulating the smart contract token at its press time levels for further gains.
The advancement of the long-awaited Merge
Ethereum and its updates have been the focus of criticism mainly due to delays. Postponing upgrades is a common sight, as seen with EIP-1559 or the London hard fork, etc.
Now, the most anticipated upgrade – The Merge – has no launch date announced. Even so, developers seem to have made some progress based on a recent announcement. This update promises to take the ETH blockchain from Proof-of-Work (PoW) to Proof-of-Stake (Pos) and will have a significant impact on current statistics.
For example, the upgrade is supposed to improve security, reduce environmental impact unlike BTC, and much more.
As mentioned previously, the test for Merge was conducted on a shadow fork. Worth pointing out here that this was a separate network, one that has no impact on the main Ethereum chain.
While announcing the update, a developer had tweeted at the time,
“The merge pandas have arrived! mainnet-shadow-fork-1 hit TTD ~half an hour ago. We’ve been finalizing and producing blocks! We quickly noticed some seemingly minor issues with Nethermind and Besu(triage ongoing). Erigon is currently syncing to head, status update later.”
Ethereum price is promising
Ethereum price established a symmetrical triangle pattern by producing three lower highs and four higher lows between January 24 and March 27. Connecting these tipping points using trendlines highlighted the technical formation, which foresees a 34% move to $3,818.
The target is obtained by measuring the distance between the initial swing points of the triangle and adding it to the breakout point at $2,837.
The price of ETH broke through this pattern on March 27 and rose by 22%. This uptrend faced exhaustion, leading to a crash of 17% where it was trading at press time ($3,072). This level was just above the support level at $2,952.
A bounce off this barrier has led to a 3% upswing so far. However, a sustained increase in buying pressure is likely to trigger another leg-up to retest the 200-day Simple Moving Average (SMA) at $3,492.
Given that this hurdle is formidable, a successful reversal could be key to catalyzing a run up to $3,833, the predicted target of the symmetrical triangle. In a very bullish case, this move could breach the psychological barrier of $4,000, pushing the total upside to 25%.
