Ethereum (ETH) price tries to breach $1,800 resistance, guns for $2,000

Ethereum rallied on the hype created by the Merge announcement. Although this is recent news, ETH has already reached the $2,000 mark after the July bear market.

After over a month of price increases, the ETH price closed at the $2,000 mark. One of the highest since the collapse of the entire cryptocurrency market. However, the most recent rally has shown confidence in both investors and traders.

The long-awaited merger

The rally was due to the recent ETH merger announcements that have been the talk of crypto traders around the world. This move, according to Ethereum co-founder Vitalik Buterin, will bring efficiency to the network and reduce the overall carbon footprint.

However, these kinds of announcements boost the confidence of traders and investors pushing the price up.

As of this writing, ETH is trading between $1,718.41 and $1,791.76. The token is also trying to consolidate at the 78.60 percent Fib retracement.

Ethereum bulls are trying to breach resistance

Recent support is set at $1,740.63 with resistance at $1,802.12. The bulls steadily tried to target the $1,802.76 resistance to continue the rally.

But as the chart shows, the rally has stalled and the bull is now trying to consolidate the position.

Two things can happen while the price of ETH stabilizes. (1) resistance will be pierced later and rise again, or (2) price breaks the $1,740 support and falls.

If the price breaks through the 61.80% Fib level, then the bulls will gain momentum and may reach $2,000 in a few days. But the indicators say otherwise.

The CCI and Stochastic RSI numbers indicate a slowdown in the trend price. So far, the CCI is at 16.69 and the Stoch RSI is at 16.17, suggesting a slight selling move.

If the bulls manage to gain momentum once again, then the price may jump and pierce the next resistance level at the 61.80% Fib level. However, if the price falls, we can expect the support to be in the $1,662.31 range.

This is a critical point in ETH’s pre-merger history. If the bulls fail to at least consolidate the price at the $1,740 support line, then there will be a strong possibility for a downward price reversal. This would inherently have an effect on the price of ETH after the merger.

Crypto total market cap at $1.02 trillion on the daily chart | Source: TradingView.com

Featured image from Crypto News, Chart from TradingView.com

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