ETH Rally on Merger Updates, But Is $2,000 in Sight? (Ethereum Price Analysis)

After the DXY index bounced off the support at 104, the crypto market entered a correction phase. Over the past few days, Ethereum has been trending higher after touching $1,523 on August 20 and rallied today as further merger updates were announced. Can the bulls recover $2,000?

Technical analysis

By grizzled

The daily chart

On the daily timeframe, buyers intensified. Defending the support at $1,500 pushed the bears back a bit. Now the buyers need to reverse the resistance zone in the $2000-$2200 range (in blue) to continue the uptrend.

On the other hand, the DXY index (in orange) recently touched the resistance of the last high at 109 (in yellow). If this level cracks, the probability of reclaiming $2,000 on the Ethereum chart will likely weaken. On previous occasions, the price of ETH has declined when the DXY index has experienced a bullish rally.

Main support levels: $1500 and $1350
Key resistance levels: $1800 and $2000

Daily Moving Averages:
MA20: $1769
MA50: $1581
MA100: $1540
MA200: $2,200

Source: Trading View

The ETH/BTC chart

Against Bitcoin, the bulls have had the upper hand in recent days. They defended the horizontal support in the range of 0.072-0.073 BTC (in green). This means that the price remains bullish for the time being as a lower low has not yet been formed.

Given the proximity of the Merge event, more investors are likely to prefer to dump their BTC for Ethereum. In this case, touching the horizontal resistance at 0.083 BTC (in red) will not be out of range. If the transition from PoW to PoS is successful, then the price of Ethereum against Bitcoin has the chance to reach the highest level recorded in 2021 (0.088 BTC).

Main support levels: 0.0.073 & 0.065 BTC
Key resistance levels: 0.083 & 0.088 BTC

Source: Trading View

On-chain analysis

Active addresses (SMA 7)

Definition: The total number of unique active addresses, including senders and recipients.

On-chain activity shows that investors are slightly wary of the recent uptrend over the past few days. This is likely related to the close attention traders are paying to macro data these days. As shown in red on the chart, whenever the price increase is not accompanied by growth in active addresses, ETH has failed to reach higher levels.

Source: CryptoQuant

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Cryptocurrency charts by TradingView.

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