ETH Technical Analysis: Will Ethereum Merge Break The $2000 Barrier?

In late August, the Ethereum (ETH) price crashed significantly as the crypto market was affected harshly by the global market sentiments. After that, however, the prices found a solid foothold near $1400 support and resumed their current recovery. Furthermore, if the upcoming Ethereum Merge event has no negative consequences, the coin price should progressively breach $2000.

Key Points:

Source - TradingView

ETH Technical Analysis

The market reacts enthusiastically when the long-awaited Ethereum Merge approaches, delivering a 24.2% boost in just two weeks. With the Merge, the Ethereum ecosystem is projected to be highly efficient, perhaps raising the coin price significantly.

However, the Ethereum (ETH) price is struggling at the psychological resistance of $1750 on declining volume, indicating a more substantial chance of a price reversal. Moreover, the evening star pattern forming near the supply zone increases the downtrend possibility. If this occurs, the uptrend may reverse to $1550 or $1400 support.

Furthermore, a daily candlestick close above $1750 will increase the bullish momentum and give a breakout entry opportunity to the sideline buyers. As a result, the bullish breakthrough should propel the ETH price 13% higher and encourage buyers to burst through the $2000 neckline barrier.

On a side note, the breakout of the 23.60% Fibonacci level at $1761 projects an uptrend in ETH prices to the 200-day EMA at the psychological mark of $2000.

Technical Indicators

The daily-RSI slope shows a bearish turnaround within the nearly overbought zone teasing a drop to the halfway line. Moreover, MACD and signal lines tease a bearish crossover as the selling pressure eats up the bullish gap. Thus, the indicators tease a bearish continuation in ETH market price as the sellers show dominance at the $1750 resistance zone.

Resistance Levels - $1755 and $1900

Support Levels - $1600 and $1500