The Merge: what impact on the price of Ether? The transition of the Ethereum network to Proof-of-Stake (PoS) is imminent. It will irreparably lead to price volatility in the crypto market. Some analysts fear the start of a downward trend. How will the move to The Merge impact the price of ETH?
An upcoming update.
Ethereum is currently preparing for a move to The Merge. Note that this will allow it to switch from proof of work (PoW) to proof of stake (PoS).
Plus, it certainly stands as the biggest update the network has had so far.
With the transition now imminent, many are watching the price of Ethereum, watching for any movement. Recall that the price of ETH has been moving for the past four months between $1,000 and $2,000. Will this evolve into a falling price or an upward acceleration? For investors, nothing is certain at this stage.
An expected support level at $1500.
The Merge will be effective this September 15 on the Ethereum blockchain. To learn more about the evolution of ETH in the coming weeks, we will rely on the data shared by the various technical indicators.
When it comes to Price Action, the price of ETH has bounced around the $1,000 area three times. This is before building support in the $1,500 area.
To be able to stay in this zone, it will have to keep the low point at $1,500 before making a new high point. If it doesn't then a new low will ensue, which will automatically confirm the downtrend.
If we base ourselves on the Ichimoku then the price will be stuck under the Kijun-sen (baseline) and the Ichimoku cloud. To find itself at the top of the range, ETH will need to break back above these hurdles at $1,800.
At the moment, ETH is following a fairly neutral direction, which does not yet allow us to predict whether or not the Ichimoku cloud can still be reached.
A relatively low trend line.
From a chartist perspective, the background downtrend with highs pointing down and lows falling even further. Recall that since June, Ethereum has been moving in an upward direction.
The price, meanwhile, failed to close above the previous high. The trend-line meanwhile is low and building narrowly in the middle of the range at $1,500.
Analysts are quite pessimistic about what will be the evolution of the price of ETH. This is mostly because a chart pattern usually breaks down. Also, to succeed in going up, he will have to hold double support. If this is not the case, then ETH will go back to the bottom of the range at $1,000 or even in the $750 range.
If the update goes as expected, then the price of ETH can hold before going to break the wedge. The price target will then be around $4,425 at this point.
Will The Merge affect the price of ETH?
It can thus be concluded that ETH is showing signs of convergent rejections. This is below the resistance levels at the top of the range. The Merge update shouldn't influence its development too much, especially if the $1,500 zone does not give way after a possible retest.
If this is not the case, then it will be necessary to reckon with a downtrend. With the added risk of falling below the $800 mark. If it goes up then, we can hope for a return to $4,425.
Of course, he will still have to succeed in overcoming the many resistances that will stand in his way. will we be able to buy Ethereum at a low price in the coming months? Nothing is sure yet!
READ MORE: What will The Merge change for Ethereum?
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