“Ethereum is more reliable and will overtake Bitcoin.” These are the words of maximalist who believes that the apex coin will one day become the second largest cryptocurrency. More top traders are bullish on the asset and claim that we see a build-up to the flipping starting this month.
One of the main reasons why many are bullish on the largest altcoin is its upcoming merger. The merger promises immense price increases. Are we going to see more uptrends before the main event? Will it happen this month?
A previous article on BTC highlighted the impact the world’s order could have on crypto assets. Ethereum is also another coin that will dip once the world descends into chaos. One indication of this is the price correlation with stocks.
For example, ETH correlation NASDAQ is at 0.89. Any price movement the traditional instrument experiences, the alt will also do the same. There is a high chance that when tensions between the U.S. and China escalate, the stock market will dip so too will ETH.
Price Uncertainty Plagues Ethereum
Following the hype surrounding the largest alt, there is a lot of uncertainty with regards to future price actions. Nonetheless, we will turn to the charts for answers. The first indicator we will look at is RSI.
We recently observed that ether is seeing a greater decrease in its trading volume. It is fast approaching 60 and may flip bearish soon.
The last time this happened, ethereum saw a more than 10% decrease. We are not expecting an exact replication of that decrease. Nonetheless, we are bound to see more struggles between the two trading factions in the coming days.
However, the Moving Average Convergence Divergence is a source of concern. The indicator has been blaring warnings for a while now. As at the time of writing, the 12-day EMA and the 26-day EMA intercepted to form a bearish convergence.
We’ve seen two such interceptions that failed to have any adverse effect on the altcoin. Following the most recent reading on MACD, we may conclude that ethereum will no doubt experience more price movement but likely to be the downside.
If the bulls build on it, we see more uptrends. On the other hand, the bears lurking. They may capitalize and send the coin on a downtrend. Nonetheless, the Pivot Point Standard offers comfort. Ether is trading above its pivot point. In a nutshell, there is high price uncertainty.
We can also draw insight from the previous price actions. ETH flipped its first pivot resistance earlier today, which many perceive as a step in the right direction. A closer look at previous price records showed that when ether flips this key mark, it most likely attempts the next before a major correction.
August is an Average Month
August is not one of the best months for the largest altcoin. Nonetheless, ethereum has lost 34% ( the highest) and gained more than 93%. It is almost impossible to conclude that the second-largest cryptocurrency by market cap will see such a price movement.
However, on average, the coin gains 4% every August. It is currently up by more than 11% which means it has exceeded its average. There may be more uptrends or downtrends over the next few days.
If history repeats itself, we may see the largest alt above $2,200 soon. Here are the key levels to watch
Vital Supports and Resistances
Key Supports: $1,300, $1,500, $1,800
Key Resistance: $2,445, $2,150
With regards to the levels to watch, there are many tight marks. Currently trading at $1,890, the first level to watch is $1,800. The most recent price shows that ether may test the said mark in a few hours if demand concentration sinks.
We may also see it flip as it is not one of the toughest barriers. ETH broke above it five days ago and has since enjoyed more uptrends above it. The next positive barrier to watch is the $1,580.
We may consider this level to be one of the toughest as several downtrends stopped at it. A flip of this key support may result in further downtrends that could send ethereum as low as $1,300.
Looking forward to more uptrends, we may expect an attempt on the $2,150 resistance. Ether has not tested this mark since May. However, it is one of the toughest resistances as previous attempts were unsuccessful. There may be an increase in buying pressure. This may result in a flip of this vital level.
