Ethereum (ETH) Continues to Outperform on Positive Merge News

0
51


Ethereum (ETH) Charts and Analysis:

  • Ethereum network completes its final test run.
  • Ethereum continues to outperform Bitcoin as the merge nears.

The highly-anticipated Ethereum changeover from proof-of-works to proof-of-stake gets ever closer after yesterday’s successful Goerli/Prater testnet merge. According to developers at the Ethereum Foundation, the Ethereum merge of its proof-of-work mainnet and the proof-of-stake Beacon chain will now happen between September 15 and 16, a couple of days earlier than originally anticipated.

Ethereum 2.0: Switching to Proof-of-Stake

After slumping in excess of 80% from its November 10 high ($4865) to the June 18 low ($878), Ethereum has rallied back over the last month to a current level around $1,900 as investors bet on a successful switch of consensus. While a cluster of highs and lows up to $2,161 may slow further upside for ETH/USD, this zone is likely to be overcome before the final switch in mid-September.

Ethereum Daily Price Chart – August 12, 2022

Ethereum (ETH) Continues to Outperform on Positive Merge News

Chart via TradingView

The Ethereum/Bitcoin spread continues to move higher and is testing channel resistance again today. The spread, a play on Ethereum with less overall crypto market risk, hit a three-month high this week and now looks set to trade at levels last seen at the start of the year. However good this chart looks, there is likely to be some period of consolidation ahead of the merge and with volatility – measured via the 14-day ATR – near recent highs, traders should be aware that this spread can move sharply. That being said, the 52-week high for this spread is 0.088366 made on December 9, and as long as the channel continues to hold price action, this high may come under pressure before the merge.

Ethereum/Bitcoin Daily Price Chart – August 12, 2022

Ethereum (ETH) Continues to Outperform on Positive Merge News

Chart via TradingView

What is your view on Ethereum – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here