On 7 September Bitcoin and Ethereum fell to local lows of $18,500 and $1,490 respectively, after which the market began to recover swiftly. On 12 September the price of the first cryptocurrency surpassed $22,000, and Ethereum rose to $1,790 in anticipation of the activation of The Merge.
Is the uptrend likely to continue? We analyse price levels of Bitcoin and Ethereum on the crypto exchange Bybit.
BTCUSD
After an unsuccessful attempt to break through resistance at $25,000, Bitcoin’s price fell sharply to the support level around $19,000, where buyers began to accumulate. From the September 7 low, the price has risen by about 20%.
To sustain the uptrend, BTCUSD buyers need to hold above $22,000. If this level holds, expect a consolidation with a subsequent rise toward $25,000.
Should there be a break below $22,000, Bitcoin could again test the psychological $20,000 level with bears aiming below $18,000.
ETHUSD
Despite the forthcoming upgrade, the trajectory of ETHUSD looks worse: from the Sept 7 low the asset has added about 15%. After reaching a local high of $1,790, the price again tested support at around $1,700.
To break above resistance at $2,000, the price needs to hold around $1,700. A rise above $2,000 could come after a successful activation of The Merge. Otherwise, the price could revisit local lows below $1,400.
Conclusions
The Bitcoin dominance index has risen again above the 40% level, which has repeatedly provided strong support at the end of the altcoin season.
Against the backdrop of the upcoming Ethereum upgrade, Ethereum has shown solid gains. Subsequently, we may see a pullback as traders take partial profits.
Moreover, potential problems in delivering The Merge could intensify pressure on the cryptocurrency market.
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