Ethereum prices are stable in the past trading week and red in the past 24 hours. Notably, bulls have failed to build on May 30 gains. Instead, prices are trending lower, capped below the middle BB as bears dash bulls’ hope.
The immediate liquidation line is the middle BB. A comprehensive, high-volume close above this flexible resistance line may set the foundation for more gains in the short term. On the lower end, ETH prices have support at $1.7k.
As of writing, ETHUSDT prices are within a bear flag, and the primary trend is bearish despite bullish sentiment from the Ethereum community.
The Merge and ETH Buying Pressure
Ethereum proponents are looking forward to the Merge. Its mainnet activation is tentative but will likely be activated in August or Q3 2022.
Traders are bullish, expecting the fundamental event to fuel the next leg up. According to experts, the Ethereum network would better scale while being energy efficient and decentralization. With the shift to staking from the cut-throat competition of proof-of-work, there will be more relief for ETH prices.
Since validators will take over from miners and block rewards will be randomly rewarded to validating nodes with more staked ETH, node operators won’t have to liquidate ETH block rewards to reinvest in expensive gear. This is a massive advantage for ETH holders in the medium term. It is estimated that the Merge and eventual shift to proof of stake will eliminate $14 billion of ETH selling pressure.
Ethereum Price Analysis
ETH is down seven percent in the past week of trading, under pressure following losses on June 7.
Even though buyers are bullish, ETH prices are still within a bear breakout formation and capped below the middle BB, as mentioned earlier. Prices have critical support at $1.7k on the lower end and $2.05k on the upper hand. Since the primary trend is bearish, sellers may unload on every pullback below the psychological $2k level.
On a more cautious approach, risk-averse traders may wait for a clear price trend definition. That requires clean breaks above or below immediate reaction levels. A close below $1.7k may force ETH towards $1.5k.
Conversely, reversal of June 7 losses and break above $2k may draw more buyers into the equation. In that case, ETH could race to retest $2.2k.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
If you found this article interesting, here you can find more Ethereum News
