Ethereum (ETH) price has continued to trade higher over the past few days, following a dramatic reversal from the previous low of nearly $1,000 in the past seven days.
On Wednesday, the ETH/USD pair reached the barrier level of $1,175, recording a significantly higher high. As of this writing on Thursday, ETH was trading at $1,218, an increase of 10.6% from the previous week, according to data from Coingecko.
The news that Ethereum developers have successfully run The Merge on the Sepolia testnet has sent Ether’s price up 5% in the past 24 hours, according to the data.
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The merger will facilitate the transition of the Ethereum network to the Proof-of-Stake (PoS) network. Proof-of-stake protocols are a type of consensus mechanism for blockchains that select validators in proportion to their holdings of the corresponding cryptocurrency. This is done in order to circumvent the computational expense of proof-of-work techniques.
The world’s second largest cryptocurrency came under intense selling pressure earlier this week. Since early April, the bears have fully dominated the market.
Support at $1,000 has prevented further declines in Ethereum’s price over the past week. The question now is whether a short-term ascent is possible or not.
In recent months, Ethereum (ETH) and the broader cryptocurrency market have operated in an environment marked by significant inflation, with the US Federal Reserve taking steps to implement high interest rates.
ETH total market cap at $146 billion on the daily chart | Source: TradingView.com
Next Ethereum target: $1,250
As fears of an economic slowdown intensified, riskier assets such as Ethereum were hit hard, with ETH temporarily dipping below the $1,000 support zone last month.
Thursday’s Ethereum price analysis is bullish as fund managers anticipate further gains after consolidation ends and a break above $1,175. Therefore, the ETH/USD pair is likely to continue to climb and approach the resistance level of $1,250.
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Despite Ethereum’s year-to-date price drop, the CoinMarketCap community predicts that the decentralized currency will trade at an average price of $2,529 on July 31, 2022.
Meanwhile, today’s Ethereum price analysis is positive as overnight gains above resistance at $1,175 held. Therefore, ETH/USD will likely continue its ascent and target the resistance at $1,250. If this level is breached, we expect a very bullish remainder for July.
Featured image from Mashable, chart from TradingView.com