A wide range of technical and fundamental indicators for ether supports a rally towards $2,500 by September.
Ethereum’s original asset Ether
ETH

down cursors
$1,239

The coin has more than doubled in value since bottoming at around $885 in June 2022. It now follows a decisive move towards $2,500 in August for each combination of technical and fundamental indicators.

A fork of the Ethereum chain means more tokens
Much of Ether’s ongoing rally has been fueled by consolidation in September, a network upgrade that will switch Ethereum’s core blockchain protocol from proof-of-work (PoW) to proof-of-stake (PoS).

At the same time, moving to PoS would also remove the role of miners on the chain, replacing miners with validators. This fear caused Chandler Gu, a Chinese cryptocurrency miner, to resist the merger by holding a proof-of-work copy of Ethereum.

As a result, a chain split is possible. Guo has already named his own version of the Ethereum PoW chain as ETHPoW with its main token ETHW. Also, some crypto exchanges have already listed the token for trading and Binance is even considering doing the same if needed.

The main implication of a potential fork in the chain is that existing Ether holders will receive an equal amount of tokens from the new chains.

In turn, this could increase market demand for ETH and push its price towards $2,500 on its way to consolidation.

An upward movement continues
During the recent price recovery, Ether confidently moved towards the resistance range between $1,625 and $1,975 which turned into a critical support.

ETH/USD is now aiming to reclaim the range as support, providing itself with a solid price floor to continue the rally towards $2,000 and above. The closest upside target is the 50-week exponential moving average (50-week exponential moving average, red wave in the chart below) at $2,340.

ETH/USD weekly price chart. Source: TradingView
The next target for a range break could be the multi-month downtrend line resistance (black line) near $2,500.

Institutional listings gain momentum
A bullish technical target of $2,500 is taking cues from the recent surge in capital inflows into Ethereum-based mutual funds.

Related: TVL Optimism Up Nearly 300% Monthly Before Merge Upgrade

Notably, these institutional products attracted $16.3 million from investors in the week ending Aug. Similar Bitcoin funds saw $8.5 million in capital outflows over the same period, indicating a strong bullish trend for Ether against the top cryptocurrency.

Net capital flow to/from crypto funds. Source: CoinShares
Overall, the hype around consolidation acts as a major bullish catalyst, as mentioned above. However, Ether could see strong price corrections after the upgrade to POS in September when traders are likely to start “selling the news”.

The views and opinions expressed here are those of the author alone and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

Source: CoinTelegraph

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