Ethereum fell as low as $1005, and a day later, as it approached $1200, I spotted a brewing reversal candle.
There was some resistance at $1275, but it broke through on Saturday and is up another 20% today. It has now risen by more than 50% in just six trading days.
The transition from an energy-intensive proof-of-work system to a more efficient proof-of-stake system has sparked the Ethereum price increase. This is known as the Merge, and it will reduce energy consumption by 99.95%. The Ethereum Foundation is aiming for a September 19 launch date.
The success of that transition will be a major factor in Ethereum and crypto in H2.
Technically, the picture is getting better. As I mentioned last week, there has been a series of higher lows since June’s bottom, and we have now broken through the double top and the recent range. The measured range break target is $1600, while the May lows (no resistance) are $1700.
Another question is whether this is a move limited to Ethereum or broader crypto.
Bitcoin has underperformed this rally, but it is now flirting with the July high of $22,484, and a break above that level would be beneficial. Other coins are also seeing positive flows, with must up 5-7 percent in the last 24 hours.