Identifying what Ethereum [ETH] needs to push itself to $2K again
Proof of Stake on Ethereum is definitely the most anticipated event of the year. Finally, after multiple delays, it seems like a date has finally been set.
The new consensus method is expected to arrive on the Ethereum blockchain on 19 September. Naturally, the first question isn’t if ETH will benefit from it, but HOW MUCH ETH will benefit from the same.
Ethereum to $2k?
Developments such as The Merge aren’t sighted very often. This makes the event a potential rally trigger that ETH could use right now, given its current condition in the market.
The king of the altcoins has been subjected to high volatility lately. It has been oscillating around the $1.2k mark for a month now. Unable to breach that level, ETH came back down to trade at $1,197, at the time of writing, after closing at $1,231 a day ago.
Interestingly, the Relative Strength Index (RSI) seemed to be repeating a pattern at press time. Rising from the oversold zone, Ethereum has been noting a hike in buying pressure. In doing so, it is now making its way up towards the bullish zone. Although it is yet to enter it, there is a fair chance it might be able to do so in the next few days.
Furthermore, the last time ETH rose from the oversold zone into the overbought zone, it took the altcoin king around 65 days. Accordingly, the price shot up by 42.47%, pushing ETH to $3,334.
If ETH were to rise by 42.47% over the 65 days since its journey to the oversold zone, the altcoin would close at $1,421 by August.
Needless to say, it doesn’t do much for the cryptocurrency, especially since it lost much more during the June crash. However, it will push the altcoin closer to the next critical level of $2k.
In order to reclaim that price level, ETH will have to hike by another 67.78% from its press time price. This will bring the total rally to 101%. This can be achieved as the arrival of the PoS will build a lot of hype for the altcoin.
Additionally, it will also gain the support of the 50-day Simple Moving Average (SMA). In fact, it may even do the same for the 100-day SMA. These two support lines are also crucial in pushing ETH towards $2k.