Proof-of-Stake (PoS) bound Ethereum [ETH] has jumped by almost 100% in the last thirty days. Consider this – On 14 July, ETH was valued at a mere $1,086. At press time, however, the altcoin was up 6.61% in 24 hours to hit a value of $2011.80 on the charts.
With investors gearing up for the final stage of the Merge, is ETH primed to go beyond and stay above the $2,000-level before the event?
No hurry
The possibility of reaching this milestone soon may have taken a hit, however. This, in light of a potential ETH price reversal from its press time position.
According to the ETH/USDT chart, for instance, the Relative Strength Index (RSI) indicated that buying pressure might have gone too far. The RSI flashed a reading of 74.09 on the charts, meaning it had already crossed the overbought level and was in the region for a price drawdown. However, investors still looking for profits may have something to hold on to considering ETH’s press time position.
Source: TradingView
Furthermore, the Directional Movement Index (DMI) revealed the +DMI (green) was comfortably above the -DMI (red). This suggested that ETH may sustain its uptick for a while.
Based on the same indicator, the ADX (yellow) flashed northbound movement, considered a strong directional one. If the ADX maintains its position, ETH’s potential of holding $2000 may well be in place. However, investors may still need to watch the Moving Average Convergence Divergence (MACD).
Source: TradingView
According to the charts, the MACD’s position was a close call between bearish and bullish momentum. Interestingly, the indicator was above zero, indicating that buyers had more strength.
Similarly, there was a slight difference in the buying pressure (blue) over the sellers (orange). For this reason, ETH’s chances of a further uptick may be more than the potential of a downtrend.
What else is going on?
Besides the cryptocurrency’s price action, ETH traders in long positions seem to have seen more liquidations than shorts. According to CoinGlass, there have been more long liquidations in the top-three exchanges over the last 24 hours.
Binance recorded $6.11 billion in liquidation for ETH long traders. OKEx reported $3.77 billion, while FTX was at $1.44 billion.
Additionally, on-chain data platform Santiment revealed that there had been more outflows on exchanges than inflows, with an 8,200 difference. With traders seemingly taking profits, would it be that ETH investors are ready to follow a Dollar Cost Averaging (DCA) strategy from now on?
Source: Santiment
Finally, investors may need to look for any significant metric divergences before taking a stand.
