In the days leading up to the Bellatrix upgrade on the Ethereum network, Ether (ETH), the native cryptocurrency of the network, has gone up considerably.
Ever since the merger's announcement on August 24th, 2022, Ethereum's price has gained footing above the $1,600 resistance versus the US dollar.
It isn't hard to speculate that prices may soon hit or even break the $1,800 resistance.
So far, ETH has been able to break above the $1,700 zone and the 100 hourly SMA (simple moving average).
ETH has to worry about now the support level at $1,780. A break above this level might send prices straight toward the $1,880 level over the short term or $2,000 over the medium term. This definitely might happen if the bulls manage to stay in control as they have done so far.
As easy as it is to consider the possibility of breaking the $1780 resistance, it is also worth noting that the reverse may occur. If the price of ETH fails to clear the $1780 level and the bears take control, a downside correction may occur, pushing prices to the next support level around the $1720 level.
According to the Fibonacci retracement tool, if the $1720 zone doesn't hold, prices may drop to $1700. A straight drop to the $1650 – $1600 zone is expected if this level also fails to hold.
Despite the successful Merge update, ETH price has followed a bearish trend for months. As of 22 November, Ethereum is hovering around the $1,086 level, down by over 3%, with a market cap of $132B
The merge draws ever closer, and the heat continues to build up.
On Friday, September 9th, developers on the Ethereum network mentioned that they had successfully completed the last "dress up" on the network in anticipation of the merge (set to happen between the 13th and 15th of September).
These "dresses" are called "shadow forks," and the 13th one on the Ethereum mainnet went live last week. Shadow forks are trial runs that simulate merge aspects and test for potential issues.
With tens of billions of dollars in decentralized applications (DApps) built on Ethereum, there is no room for errors.
Ethereum developers have since, however, assured the public that the merge would go exactly as planned.
Maybe more than any other reason, to give its developers some well-deserved peace of mind.
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