On July 21, price movement in the cryptocurrency market was mostly muted as traders took a day to digest recent gains and book profits after the strongest relief bounce since early June.
The Ethereum Merge has remained at the top of the list despite rumors regarding what sparked the recent spike. After a preliminary date of September 19 was chosen for the mainnet Merge, the market rally accelerated.
Following a peak of $1,620 on July 20, Ether’s (ETH) price retraced to a lower of $1,463 in the early market hours of July 21. Since then, it has rebounded back above support at $1,500, according to data TradingView.
Following the initial price spike caused by the Merge news, here is what various analysts anticipate will happen as Ether’s mainnet switch to proof-of-stake draws near.
A Retrace Is Always a Good Sign
Market researcher Rekt Capital posted the following chart showing the significance of Ether’s weekly finish over $1,300 and subsequent rise higher, describing the retreat on July 21 as a good development.
They Said:
“Even Though #eth May Just Increase in Price Until It Reaches the Upper Orange Region, It Would Be Better for the Currency to Decline. A Retest of This Kind in the Lower Orange Area Would Only Rise the Chance of Continuation.”
This prognosis is in line with the pullback on July 21, which raises the prospect of a rise above $1,700 soon.
ETH Can Drop to $ 1,200 too!
Crypto trader and fictitious Twitter user Team Lambo foresaw Ether’s minor retrace and offered the following chart illustrating the unambiguous rejection at $1,630 and the 10 percent retracement.
Team Lambo clarified in a tweet:
“Keep on Waiting for That Move for #ethereum. The Bigger Correction Will Come Below $1,440 and Almost Certainly Will See a Sharp Drop Towards $1,200.”
Market analyst CryptoLinns provided a more sophisticated analysis of the recent price movement for ether. He released the chart below and noted that neither the advance on July 20 nor the decline on July 21 created new highs or lows on the 4-hour chart.
$ETH 4h chart
Yesterday's rise did not appear a new high. It followed $BTC down again. And the drop did not appear a new low#ETH #BTC #Crypto pic.twitter.com/oqWjMPYf5p
— Nowhere (@CryptoLinns) July 21, 2022
The Final Candle Displayed a Lengthy Lower Shadow Line, Demonstrating the Presence of Demand. But Volume is Insufficient. Check to See if the Demand for This Candle is Still There.
CryptoLinns estimates that the current support level is $1,450, and the overhead resistance is $1,630.
Crypto trader Altcoin Sherpa produced the following image: lower levels of support at $1,012 and $1,281, and overhead resistance at $1,701, $2,145, and $2,465. This chart offers one last glimpse into the crucial levels to observe on the Ethereum chart.
$ETH: Levels#Ethereum $ETHUSD pic.twitter.com/Bfqu4IVgMr
— Altcoin Sherpa (@AltcoinSherpa) July 20, 2022
The market capitalization of all cryptocurrencies is currently $1.039 trillion, and Ether has an 18% domination rate.
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