- Ethereum price has staged a strong recovery in the past few days.
- Ethereum merge event is scheduled to happen in September.
Ethereum price has made a spectacular recovery in the past few days as investors wait for the upcoming merge. ETH has also jumped because of the ongoing recovery of blue-chip DeFi tokens like Aave, Uniswap, and Curve DAO. It is trading at $1,461, which was the highest point since June 12th this year. This price is about 66% above the lowest point this year.
Ethereum merge update
The main catalyst for the recent ETH price surge is the recent update about the merge event between the proof-of-work version and the beacon chain. This merge will effectively transition Ethereum from a PoW to a proof-of-stake platform that is significantly faster and cost-effectively.
In a statement last week, Ethereum developers said that they are hoping that the merge will take place in September this year. That will be in line with their previous guidance that the event will happen in the third quarter of the year.
The Ethereum merger delay is understandable because of how important and delicate it is. A single vulnerability could lead to substantial losses. Besides, billions of dollars flow through Ethereum’s platform on a daily basis. At the time, I wrote that the merge delay would push it to drop below $1,000.
Ethereum price is also rising because of the recent performance of the Decentralized Finance (DeFi) industry. After going through a major dip in the past few months, the industry has staged a major comeback in the past few days.
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For example, the total value locked (TVL) in Ethereum’s DeFi protocol has jumped from about $45 billion last week to over $51 billion. As a result, DeFi tokens like Aave, Uniswap, and Curve DAO have all risen by over 80% from their lowest points this year.
The rebound of blue-chip DeFi tokens is mostly because investors believe that they will thrive as the smaller ones struggle.
Ethereum price prediction
In my last note on ETH price, I pointed to the forming bearish flag pattern and warned that the coin would drop to about $800. This view was wrong as the coin has staged a strong rally in the past few days. Along the way, it has moved above the 25-day and 50-day moving averages. It has also invalidated the bearish flag pattern. It is also approaching the 23.6% Fibonacci retracement level.
Therefore, the outlook for Ethereum price is bullish, with the next key resistance level to watch being at $1,700. This price was the lowest point in May this year and is about 18% above the current level.
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