Ali Raza
Ethereum has gained 6.7% during the past 24 hours to trade at $1384 at the time of writing, according to CoinGecko. Ether’s price has registered a notable dip since the Merge, dropping by 19% over the past two weeks.
Can Ethereum rally push ETH to $1500?
Ether is attempting to overcome the bearish sentiment experienced this month. Ethereum bears have been in control of the market since the days leading up to the Ethereum Merge as traders hedged against the risks of Ethereum’s switch from proof-of-work to proof-of-stake. While the Merge was expected to see more people buy Ethereum, the contrary happened as trades sold the news.
A bullish sentiment seems to come up as Ether trades at $1384. Ether traded between $1290 to $1390 over the past 24 hours, showing mild volatility. Ether’s trading volumes during the past 24 hours total $16.14 billion, while the total market cap stands at around $167 billion, giving it a market dominance of 16.5%.
Ether has seen a decline in the bearish momentum this week, with the breakout past $1300 renewing trader confidence that ETH could push higher. Bulls have managed to break past the resistance level of $1350.
If the bulls are still at play in the coming trading hours, Ether could test higher levels of $1450, after which a rally past $1500 will be witnessed. If the bearish sentiment around the Merge is completely wiped off the market, Ether could swing to the September 11 highs of above $1700.
The broader market sentiment will also determine Ether’s upside. Bitcoin has broken past $20K, and BTC and ETH report similar performance. Therefore, Ether breaking out past its consolidation at the $1300 levels will depend upon how the broader market performs.
Ether is on a strong bullish trend, as proven by the price indicators. The ETH Relative Strength Index (RSI) currently stands at 65, showing that the buyers have control of the market. The Moving Average Convergence Divergence (MACD) is also above the signal line, further showing the bulls’ strength.
However, the bullish sentiment created by these indicators also shows a risk of reversal. If Ether reverses, the lower support of $1250 will be tested. Intense bears could also push the price lower towards $1100.
GPU mining headed for extinction
The performance of Ether over the past month has been largely attributed to the Ethereum Merge. The Ethereum Merge happened on September 15 and saw the Ethereum network transition from proof-of-work to proof-of-stake. The transition led to Ethereum miners being removed from the network.
A South China Morning Post report has highlighted the significant drop in the prices of Nvidia GeForce GPUs. The SCMP report gave an example of the RTX 3080 GPU, which has dropped from 8000 yuan to 5000 yuan.
Ethereum’s transition to PoS is good for the network because it has lowered energy consumption by 99.99%. However, it could mean that Ether’s short-term price movement will be uncertain as miners could rush to book the highest profits. The selling pressure from former Ethereum miners could take ETH back to the $1200 levels, with the price expected to consolidate for a while.
Related
- Ethereum Price Prediction 2022 – 2025
- Best Ethereum Mining Platforms in September 2022
- Why is the Ethereum Price Dropping After The Merge?
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This article was written for Business 2 Community by Ali Raza.
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