Ethereum Price Analysis August W1
Presently, Ethereum is trading between $1,672.91 and $1,718.46 which boosts the investors’ confidence in the prominent crypto token. The Native token of Ethereum, Ether (ETH), has been displaying great progress in comparison with Bitcoin (BTC) because the community is excited about the upcoming upgrade of the Ethereum Network named “the Merge.”
The Ongoing Statistics
On a regular chart on 6th August, both the crypto tokens elevated to 0.075 (as an intraday high) after an upside move of up to 1.5%. in the meantime, the profits of these tokens were witnessed during a vast reversal trend that commenced a month back at 0.049, collecting nearly 50% profits. The tokens recovery has partially emerged resulting from the Merge (a transformation of the network between proof-of-work (PoW) mining to Proof-of-Stake (PoS).
As the Merge is going to take place in September, the Ethereum investors will have to decide between the 2 choices where one will be to trade their equipment while the other one will be to shift to a blockchain similar to Ethereum Classic to keep performing their mining activities. At the moment, miners are showing an inclination toward Ethereum Classic as one of the largest mining pools, Antpool, has allocated up to $10M to support its ecosystem.
Burgeoning Trend of Ethereum Indicates Sell-off
Looking at it from a technical viewpoint, Ether experiences temporary losses as promising while moving toward promising heights. In addition to that, a decreasing volume as well as relative strength index (RSI) confronting the rising trend of the token further raises the bearish divergence hazards. Simultaneous to this, experts present a positive outlook of Ethereum while having a comparison with the United States dollar. The likelihood of a ten percent rise in August counts to be a beneficial move taking place during a common bullish reversal trend.
Potential Outcomes
Ether has formed a seemingly “double bottom” in its four-hour chart. The respective pattern is similar to the letter “W” because of the 2 subsequent lows after which an alteration was witnessed while moving from downside to upside. Apart from that, the resolution of a double bottom occurs as soon as the price surpasses its usual resistance level and rises as high as equal to the gap between the initial bottom as well as the resistance. Keeping this in view, Ethereum can touch the figure of $1,940 within this month, nearly ten percent above its today’s price.
