The cryptocurrency market has returned to the green with Ethereum (ETH) making a recovery. Second crypto by market cap has seen an uptick on the back of a possible full transition to Proof-of-Stake (PoS) consensus. The date of the event was announced two days back.
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This process will be completed with “The Merge”, an event scheduled for September 19, 2022, which aims to combine Ethereum’s execution layer with its consensus layer. The ETH Core developers have successfully carried out this process on the main testnet of the network.
As the uncertainty around the “merge” subsides, crypto investors increasingly grow. At the time of writing, Ethereum (ETH) is trading at $1,480 with a 10% gain over the past 24 hours and a 27% gain over the past week.
In the crypto top 10 by market cap, only ETH has recorded such an increase in price. Bitcoin registered a 7% gain last week, while XRP and Solana posted 12% and 15% gains in the same period.
Data from material indicators shows that liquidity for the ETH/USDT trading pair is moving upwards along with the price of the cryptocurrency. When ETH price broke above $1,350 it was able to move quickly towards the $1,400 area.
This suggests that $1,300 has flipped from resistance to support, making it an important level in case of future downside price action. As seen below, bids are moving up with the price of ETH, with buy orders above $7 million indicating permanent bullish price action at around $1,450.
Analyst Ali Martinez believes ETH printed There was a bullish four-hour candlestick when it broke below $1,300. At the time, the cryptocurrency broke out of a multi-month consolidation and was gaining enough momentum to reclaim the level above $1,650.
The analyst believes that ETH price is heading towards this zone and it is likely to reach $1,670. The next area to watch if ETH moves higher in this area is $1,700.
Why is $1,700 important to the price of Ethereum?
Excessive information Ethereum provided by JarvisLabs indicates a significant change in market dynamics. In this period the cryptocurrency, which is used to measure short-term gains and losses for crypto investors, flipped its 30-day returns.
This metric is trending towards 0% after moving into negative territory for several months. According to Jarvis Labs, a 30D flip above 0% for Ethereum could provide investors with a selling opportunity.
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In the past, and during a bear market, the cryptocurrency has seen serious crashes whenever ETH’s 30D returns experienced a period of consolidation and later a positive turnaround in the metric. Jarvis Labs said below is a chart of what happened to the price of ETH when it saw similar performance:
If this fractal wants to replay itself then all pumps up to the level of $1700 will start selling for the next 1 year. Conversely, a flip of 1700 from resistance to support would be equivalent to a flip of ~$350 in the summer of 2020 and could signal the start of a new bull market.