Ethereum has faced numerous rumors, but the expected outcome from shifting towards Proof of Stake hasn’t yet been realized. Analysts and even the founder mentioned the merger to have no impact on the services or productivity of ETH, but in reality, the token tanked to lower levels under $1000 before making a comeback.
The technical perspective is adding further pressure onto ETH as prices are nearing 200 EMA, which buyers are expecting to offer some consolidation. The market capitalization in the recent buying spree has already shot up to $194,844,369,468. The uptrend possibilities of ETH would be completely realized once it retraces to the higher levels above $4000.
Ethereum has made a comeback; buyers seem to vary from previous profit booking trends. ETH has undergone subsequent profit booking soon after breaching the 100 EMA curve. The outlook for the current trend has entered a bullish zone, but prolonged consolidation can force the token into a bear trap.
Ethereum has gained decent value since making its breakout from the narrow consolidation zone that continued for good two months. Ethereum prices jumped to $1660 from $1400 without failure, but a break in the uptrending momentum has created a halt, allowing profit bookers to direct the market movement.
The 100 EMA curve for ETH is active at $1500, which would be acting as support for a short duration before a breakdown is visualized. The 200 EMA curve is active around $1760, which would be a major rally point for the buyers. On price action, Ethereum also has some resistance around $2,000.
RSI has entered overbought zones indicating the fundamental shift towards buying in recent days. MACD has entered a bullish trade, requiring a consolidation and breakout to maintain its uptrend. The sellers will be searching for any opening to create pressure on ETH, which could destroy the gains made in recent weeks. Hence, buyers should be cautious before entering ETH at a higher value above $1800.
ETH on weekly charts confirms a comeback, but this uptrend could be limited for the current timeline. The buyers and sellers have already begun fighting for dominance over the price action, and in the last two days, candlestick has created a no-movement zone.
Ethereum is closely hanging around $1600, and this would be the first time since the implementation of the Proof of Stake merge that a positive movement is being witnessed in ETH. RSI for this token has gradually started to move in positive territory above 50.
MACD has yet to make a significant positive return, which requires ETH to move above $2500. The prices seem to be consolidating since May 2022 between $1000 and $2000.