After reaching a multi-week high on the weekend, ethereum held steady Monday as market uncertainty increased ahead tomorrow's Merge. The token traded above $1,700 on Sunday, but fell after bulls likely sold previous positions. Bitcoin rose for the sixth consecutive session, and remained higher.
Bitcoin (BTC), which rose for the sixth consecutive session to begin the week, was largely bullish sentiment in cryptocurrency markets.
BTC/USD climbed to $22,244.38 earlier today's session. This was less than 24 hours after it traded at $21,493.03.
Today's rally saw the token rise by more than 12% over the past seven days. Some expect further gains this week.
The chart shows that price strength has moved towards overbought territory due to recent bullish momentum.
The 14-day relative strength indicator (RSI), is currently at 59.67 as of writing. This follows a recent breakout from the 55.40 resistance level.
This is in addition to the fact that the 10-day (red-colored) moving average is on the edge of crossing with its 25 day (blue) counterpart. This could indicate further price increases.
As traders were preparing for tomorrow's Merge event, ethereum was consolidated Monday ahead of the Merge.
After Sunday's peak at $1,782.73, the ETH/USD fell to an intraday low today of $1,721.63.
This is likely because bulls have already made gains in anticipation of higher levels of volatility over the next days.
Prices have recovered from the lows of the previous day and ETH is now trading at $1.751.34.
This is because sentiment remains bullish despite a recent cross between moving averages of the 10-day (red) and 25-day(blue).
Overall, traders' targets remain at $1,800. This could change if the RSI rises above its current ceiling of 60.00.
Sign up here to receive weekly price analysis updates to your inbox:
Are you expecting market sentiment to turn bearish in the coming week? Comment below to share your thoughts.
By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: BTC Extends Gains, ETH Consolidates Ahead of The Merge
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-extends-gains-eth-consolidates-ahead-of-the-merge/
Published Date: Mon, 12 Sep 2022 12:30:32 +0000