The price of ETH has not changed after a week of growth, leading analysts are calling for a short-term pullback, followed by a rally in September, when the mainnet merger is expected.
Cryptocurrency market price action was largely muted on July 21st as it took traders a day to digest last week’s gains and lock in profits after the biggest recovery rally since early June.
Among speculations about what led to the recent rally, the Ethereum merger consistently tops the list. The market rally unfolded after the tentative mainnet merger date was set for September 19th.
Data from Cointelegraph Markets Pro and TradingView shows that after reaching a high of $1,620 on July 20, the price of Ether (ETH) retreated to a low of $1,463 in the early hours of trading on July 21 and has bounced above support since then. 1500 dollars.
ETH/USDT 1-day chart. Source: Trading View
After the initial price spike caused by the merger announcement subsided, here’s what some analysts are expecting as the mainnet transition from Ether to Proof-of-Stake approaches.
Ethereum’s pullback on July 21st is a positive development according to market analyst Rekt Capital, who released the chart below, highlighting the significance of its weekly close above $1,300 and subsequent move higher.
Weekly ETH/USD chart. Source: Twitter
Rect Capital says:
“While #ETH could just keep rising to reach the upper orange area, it would be more beneficial for ETH to fall. Such retesting of lower orange will only increase the likelihood of a continuation.”
The pullback on July 21 is consistent with this forecast and suggests the possibility of a rise to $1,700 in the near term.
Watch out for a sharp drop to $1,200.
Ethereum’s modest pullback was also an expected development from crypto trader and Twitter user Team Lambo, who provided the chart below showing a clear bounce at $1,630 and a 10% pullback.
ETH/USDT 1-day chart. Source: Twitter
The Lambo team explained this in a tweet:
“Now there will be a big correction below $1440 and there will almost certainly be a sharp drop to $1200 so keep waiting for this move for #Ethereum.
Related: What are the long-term goals of the Ethereum blockchain? Vitalik Buterin explains live on EthCC
Lower highs and higher lows
Market analyst CryptoLinns offered a more detailed analysis of Ethereum’s recent price action, who released the chart below and noted that the move failed to reach a new high on July 20 and the fall failed to make a new low on July 21 for the 4 hour chart.
ETH/USDT on the 4-hour chart. Source: Twitter
“The last candle showed a long lower shadow line, proving that demand has arisen. But the volume is not enough. See if there is still demand for this candle.”
According to CryptoLinns, the current support level is $1450 and the upper resistance is $1630.
The final look at the critical levels seen on the Ethereum chart has been provided by altcoin crypto trader Sherpa, who has posted the chart below showing lower support at $1012 and $1281, as well as upper resistance at $1701, $2145 and $2465.
ETH/USD on a 1-day chart. Source: Twitter
The total market capitalization of the cryptocurrency is currently $1.039 trillion and the Ethereum dominance rate is 18%.
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