Even though ETH is under pressure, the revival of the past few days could hint at possible seller exhaustion. August 26 will be a climactic bar if there is no confirmation below last week’s lows.
There is a double bar pattern on August 28 and 29, with the latter bar engulfing and high participation levels. Afterward, the follow-through from early this week is a net positive.
Further gains that reverse the end of last week’s losses with expanding participation levels above the middle BB and August 19 could pump ETH to new highs.
Teku Releases the Latest Client Version ahead of the Merge
These gains are ahead of the highly anticipated Merge in less than 20 days. The upgrade will be the basis for an energy-efficient Ethereum, laying the foundation for better scalability in the years ahead.
Teku, one of the major Ethereum clients, has already released the Bellatrix Upgrade. The software update to v22.8.1 is a configuration for all mainnet users. It is critically ahead of the Bellatrix mainnet activation on September 6.
Binance Supports the Merge
Meanwhile, Binance has indicated its support for the proof of stake shift. Subsequently, the exchange plans to deposit users with tokens resulting from any of Ethereum’s hard forks.
They will also suspend deposit and withdrawal of ETH and ERC-20 tokens to secure user funds ahead of the Merge.
Ethereum Price Analysis
Though prices are relatively stable, there are a series of higher highs in the daily chart.
The bullish engulfing bar of August 29 has been confirmed at spot rates as prices edged higher, though with comparatively low trading volumes. As it is, traders may search for liquidation opportunities on every pullback towards the middle BB and $1.8k.
The only time this preview change is when ETH bulls charge past the middle BB—the dynamic resistance line—and $1.85k, reversing the losses of August 19.
Before then, the inability of bulls to reverse losses of the past ten days means sellers are still in control from an effort versus results perspective.
Because of fundamental factors, risk-on traders can wait for trend continuation below $1.4k or the 50 percent Fibonacci retracement line of the June to August 2022 trade range.
In that case, ETH could further drop to $1.15k, or the 78.6 percent Fibonacci level of the June to August trade range.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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