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The ETHUSD: Price Increase may be Temporary

8/30/2022 2:51 PM

The ETH/USD pair started the current week with growth and regained some of the losses incurred after the statement of the head of the US Fed Jerome Powell on Friday. Against the background of confirmation of the regulator's determination to continue tightening monetary policy and keep interest rates high for a long time, the price of the cryptocurrency has adjusted to the area of 1423.20, but has now returned to the level of 1590.00.

The traditional support for the asset is provided by the expectation of the transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, which should significantly increase its throughput and create new opportunities for using smart contracts. According to the roadmap published by the Ethereum Foundation, the Bellatrix update is scheduled to be released on September 6 and will be the beginning of the process of merging the Ethereum and Ethereum 2.0 networks, which will be finally completed in the period from September 10 to September 20. Most experts are confident that switching to PoS will lead to an increase in the value of ETH, however, some believe that on the eve of this important event, the price will remain under pressure. For example, Bank of America analysts note that investors can switch to a wait-and-see position or temporarily start moving to other blockchains, such as BSC, Tron, Avalanche and Solana, in order to wait out technical instability, but so far this skepticism is not justified, and the price continues to rise. 

Technically, a short-term downward trend remains in the ETH/USD pair, as evidenced by the downward reversal of the Bollinger Bands and the stabilization of the MACD histogram in the negative zone. The key for the "bulls" is the level of 1750.00 (Murray [6/8]), supported by the middle line of the Bollinger Bands, the breakout of which will give the prospect of continued growth to the levels of 1895.00 (Fibo retracement 38.2%, Murray [7/8]), 2030.00 (the area of August highs). With a breakdown of the level of 1500.00 (Fibo retracement 23.6%, Murray [4/8]), the decline will be able to resume to the levels of 1375.00 (Murray [3/8]), 1250.00 (Murray [2/8]), 1125.00 (Murray [1/8]).

Resistance levels: 1750.00, 1895.00, 2030.00.| Support levels: 1500.00, 1375.00, 1250.00, 1125.00.

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