Ethereum (ETH) Holds on to the $1.7K and 100 EMA Level Strongly!
Ethereum, the number 2 blockchain, is headed to create a new peak value since the minor profit booking witnessed on July 28, 2022. Price action continues to witness some resistance at the $1780 levels, but buying sentiment has broken all records as RSI enters over-bought zones. The Ethereum price action seems to have found a trigger with the date from the current merge towards the Proof of Stake validation algorithm coming closer.
The risks and rewards of transition are for a different set of people. Ethereum currently rewards miners for validating transactions, which is done by using computing power, and it positively impacts people investing in mining rigs and validating ETH transactions. Alternatively, the brunt of heavy gas usage and processing costs is borne by ETH blockchain users, which results in higher transaction costs, currently at $0.560. Transitioning to a Proof of Stake algorithm can enable ETH to process transactions at just $0.05, resulting in higher adoption of this blockchain. Ultimately, a blockchain operates on the transactions it completes; hence, this transition could be successful.
ETH has reached another important psychological level of $1770, putting the price action on a positive trajectory. This blockchain is currently worth $217,010,642,032 as per the latest value of $1773.
Ethereum token has once again started to test the resistance force of 100 EMA, and it would be the second consistent attempt that has helped it breach this level momentarily. Technicals seem highly bullish with price action moving towards upper resistances, and ETH nears the pivot point of the May crash. Click here to know more about what the long-term future holds for Ethereum.
The Ethereum price action showcased a recovery from the June dips that resulted in the highest transaction volumes showcasing a much higher dumping of ETH tokens. Current transaction volumes are consistently declining, but technical indicators, be it moving average, RSI, or MACD, indicate a positive trend.
Resistances based on price action are yet to be encountered, the first one is at $2185, and the stronger one is at $3566. These resistances are significantly above the latest trading value. The recovery pattern on ETH is not net a V or W but rather a slow-paced recovery where sellers are actively searching for opportunities to dump and push the Ethereum value back into the red zone.
RSI indicator has reached the overbought zones, trading at 65, while MACD has repeatedly altered its projections creating a null impact on the price action. The price momentum is more about a big buying day followed by slow-selling or consolidation before the repetition of the price action. It would be the fourth such swing of price momentum at the current timeline.
Price action on weekly charts has improved from selling pressure at resistance to breaking out of the resistance zone. ETH now marks six consistent weeks of positive price action with the current week candle just a day old with the highest growth in the third week.
MACD on weekly charts indicates a positive run, and so does the RSI, which indicates the sentiment to be half of the volume witnessed during the peak price actions. MACD has even created the green bar on its histogram, indicating the beginning of a bullish divergence with each new high-level Ethereum touch. However, buyers should avoid holding too much ETH during the projected merger date in September 2022.
