The Ethereum price is following Bitcoin as the two largest cryptocurrencies by market capitalization trend to the upside. The market is currently facing low timeframe resisting, but the general sentiment seems to have flipped bullish across the board.
At the time of writing, Ethereum price trades at $1,700 with a 5% and 7% profit in the last 24 hours and 7 days, respectively. In the meantime, Bitcoin is outperforming with a 10% profit over the past trading session.
ETH’s price with minor gains on the 4-hour chart. Source: ETHUSDT Tradingview
The Ethereum Rally That Could Precede A Clash?
As NewsBTC reported earlier, Bitcoin and the crypto market were coming in a major cluster of sell orders. Ask liquidity was trending upwards following the trajectory of the Ethereum price and other major cryptocurrencies.
The current price action seems to be a clash between bullish and bearish forces with the former taking control for the first time in weeks. For low timeframes, data from Material Indicators (MI) shows a total of over $60 million in buy orders from the different investors class.
However, the Ethereum price must remain above $1,6800 to maintain its current bullish momentum. In the coming week, the second crypto by market cap will go through a major event with “The Merge”. Below these levels, bid liquidity runs thin and could lead to retrace to previous support.
ETH’s price (blue line) facing short-term resistance on low timeframes. Source: Material Indicators
The event that will complete Ethereum’s transition from a Proof-of-Work (PoW) consensus to a Proof-of-Stake (PoS) consensus, “The Merge” is a highly anticipated event in the crypto market. Probably one of the main catalyzers for the current price action.
Many believe the Ethereum price will operate under a “buy the rumor, sell the news event”. This could potentially push the price of the cryptocurrency north of $1,800 and potentially $2,000 if bulls can sustain momentum.
What Will Happen To The Ethereum Price After “The Merge”?
According to analyst Justin Bennett, the price of Ethereum could rally above $1,800 if bulls can clear resistance between $1,740 and $1,780. This price action might take place after “The Merge” and depending on the strength of the move, a retest of the lows at around $1,500.
Bennett said the following on the current ETH’s price action:
(…) I have no position here. I’m not going to enter before the weekend, and I’d prefer to look for shorts on the next higher high next week. This is probably a brief pullback if anything.
ETH’s price potential resistance and support levels. Source: Justin Bennett via Twitter