Ethereum Rallies 76% from 2022 Lows as ETH Bulls Aim for $1.7k

Ethereum Rallies 76% from 2022 Lows as ETH Bulls Aim for $1.7k
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Ethereum is up a massive 76 percent from 2022 lows and is likely to post more gains in subsequent sessions, trackers on July 20 shows. When writing, ETH has added three percent on the last trading day, and prices are within the July 18 trade bar, a signal of strength from an effort versus results perspective.

A critical development in this spike is the surge in trading volumes, a hint of investor and trader confidence as the cryptocurrency market recovers after steep losses in H1 2022. Technically, Ethereum is currently within a bullish breakout formation, trending above a tight trade range established in the second half of June 2022.

Ethereum Rising with the Tide

Several triggers may explain the improving trader confidence and shift in momentum. At the top is trader anticipation of improving crypto conditions in the medium term.

After sharp losses that saw ETH and the broader market lose a ballpark 80 percent from November 2021 highs, many traders expect a reprieve. The current bounce higher while relaying trader confidence and expectation doesn’t necessarily mean it is all clear for traders. Still, since prices are trending higher, ETH would likely continue rising with the trend.

The Merge

Fundamentally, traders expect better prices in short to medium term because of the expected activation of the Merge. The transition will pave the way for integrating on-chain scaling solutions while making Ethereum more energy efficient. Besides, ETH is also expected to be deflationary and thus gradually become ultra-sound money with slower emission rates than Bitcoin.

Ethereum Price Analysis

Ethereum Price Analysis

ETH is firmly on the upside, adding three percent on the last trading day and within a bullish breakout formation. Since prices are above the $1.25k trigger line with rising trading volumes and within the bullish engulfing bar of July 18, traders can search for entries on every dip.

ETH bars are also riding the upper BB, a pointer to solid upside momentum. However, this forecast is valid only as long as ETH prices are trending above $1.41k. The immediate term target is at May 2022 lows of $1.7k. Any unexpected price contraction below $1.41k and July 18 lows invalidate the bullish preview and may see ETH drop to $1.25k in a retest.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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