For the first time in six weeks, Ethereum prices are above the $1.4k mark, breaking out as bulls flow back to support prices after weeks of depressed price action.
After weeks of bears having the lead, reading from the overall candlestick formation in the daily chart, the trend is quickly shifting following sharp confirming gains that saw ETH race above $1.4k.
Not only is ETH bottoming up, offering a reprieve for bulls, but traders might hitch the ride higher as a new trend emerges.
Ethereum Merge and Macro-Economic Factors
The expansion of crypto prices is across the board, and Ethereum bulls are pumped at spot rates. Fundamentals are positive and bright since the long-term prospects of Ethereum’s Merge are huge and could see ETH become scarcer than Bitcoin.
When ETH becomes ultrasound money, it might replace BTC as a store of value, which proponents add might even lift the coin to a new status and price levels. Trackers reveal that the ETH burn rate is faster than issuance, making the coin, at spot rates, technically deflationary.
The Merge is massive for Ethereum, but Iakov Levin, the founder and CEO of Midas, believes that this fundamental event won’t move prices, at least for now, because of broader macroeconomic conditions. He points to inflation and the intervention by central banks across the world.
Ethereum Price Analysis
ETH is up ten percent in the past 24 hours, breaking above the $150 zone defined at between $1.25k and $1.4k.
Moreover, a notable observation is that the bull breakout of October 25 has rising trading volumes and is wide-ranging.
Also, the bar is aligned with the upper BB, meaning there is sufficient momentum, that is, demand. It is a critical requirement if ETH is to soar from spot rates and reclaim $2k in the medium term. The consolidation of the past six weeks led to a BB squeeze.
The current breakout defines price action, an opportunity for aggressive traders to load on dips, targeting $1.8k and $2k, marking September and August 2022 highs.
Unexpected price drops below $1.3k and the middle BB will nullify this preview.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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