While publishing this bog, the Ethereum price exhibited an interesting pattern following the latest crash. The leading altcoin appears to hover beyond a critical support floor that absorbed selling momentum to prevent more downswings. Hence, interested traders can accumulate ETH at the press time zones for more returns.
The Much-Awaited Merge
Ethereum has seen its updates attracting criticism because of delays. Market players know ETH developers for postponing upgrades, as witnessed during the London hard fork (EP-1559). Now, Ethereum is yet to announce Merge’s official launch date. Keep in mind that this is the most-awaited upgrade by crypto enthusiasts. However, the latest announcements show developers impressive progress as far as the update is concerned.
The Merge promises to shift the Ethereum blockchain to Proof-of-Stake (PoS) from Proof-of-Work (PoW). Such a move would have a substantial impact on ETH’s current statistics. For instance, the update would enhance security, reduce environmental impact, unlike Bitcoin, and many more.
Meanwhile, the developers conducted the Merge test on a shadow fork. That meant using a different platform to avoid affecting Ethereum’s operations amid upgrades. A developer tweeted about the update’s progress, stating that Merge pandas had arrived and the team was finalizing blocks production.
ETH price formed a symmetrical triangle setup by producing four higher lows and three lower highs between January 24 and March 27. Using trend lines to connect the swing points unveiled a technical pattern that predicts a 34% surge to $3,818, determined by measuring the swing level distance and adding to the $2,837 breakout zone.
Ethereum breached this pattern on March 27 and gained 22%. The upward move encountered exhaustion, translating to a 17% drop toward the current price levels ($3,072). That level was beyond the $2,952 support floor.
A rebound from this level has triggered a 3% surge so far. Nevertheless, a sustained buying pressure surge can catalyze another uptick to hit the 200-day SMA at $3,492. Since this is a formidable hurdle, flipping it might be vital in triggering a bullish rally towards the symmetrical triangle’s predicted target of $3,833. An extended run-up would see ETH tagging the psychological barrier at $4,000, a 25% upsurge.