Ethereum price has seen a significant increase in recent days and it has also been able to hold resistance firmly. The asset was on the verge of reversing the impact of the uptrend due to the fall in prices over the past few days. However, the current price action is showing the possibility of a retest of the levels within the bullish flags that aim to reach $1800 or higher after the breakout.
The price of ETH is down almost 90% from its highs and with the latest rally, the asset has set up a parabolic curve to reclaim lost positions.
However, the asset needs to overcome significant resistance initially at $1800 and later at $2000. Moreover, the upcoming merger is expected to generate significant volatility and on the other hand, traders are also seen preparing themselves ahead of the merger.
massive exchange outflow
As the merger scheduled for September draws near, huge ETH outflows have been recorded from the exchanges. The platform has recorded the highest outflows in recent days which surpassed all previous levels.
During the recent price halving, a major outflow was recorded from the exchanges which exceeded 600K ETH on 22nd July. Subsequently, the balance on the exchanges was reduced to $20.6 million. This clearly indicates that traders have maxed out the asset prior to the ETH 2.0 merger as a significant bounce is expected.
Increase in daily active addresses
On the other hand, activity on the platform seems to be picking up as daily active addresses peak. The platform recorded around 36,636.726 addresses to reach an 8-month high.
Therefore, most indicators are currently pointing to a pre-determined significant increase for the Ethereum (ETH) price rally ahead of the merger. A nice spike of around 25% is fast approaching for the asset in the coming days.