Ethereum (ETH) Merge Countdown: Less than 120 Minutes to Merge
- Ethereum (ETH) rallied by 4.06% on Wednesday, partially reversing Tuesday’s US CPI Report-fueled sell-off.
- Investor sentiment towards the Merge and the easing bets of a percentage point Fed rate hike provided support.
- However, technical indicators are bearish. ETH sits below the 200-day EMA, currently at $1,639.
On Wednesday, Ethereum (ETH) rallied by 4.06%. Partially reversing an 8.27% slide from Tuesday, ETH ended the day at $1,639.
After a range-bound morning, ETH fell to a late afternoon low of $1,553. Avoiding the First Major Support Level (S1) at $1,504, ETH rallied to a late high of $1,649. However, coming up short of the First Major Resistance Level (R1) at $1,704, ETH eased back to end the day at sub-$1,640.
Bullish sentiment towards today’s Ethereum Merge delivered support. While ETH rose by 4.06%, ravencoin (RVN) and ethereum classic (ETC) saw gains of 17.44% and 11.23%, respectively, reflecting the influence of the Merge on the broader crypto market.
However, investor anxiety hit ETH and the broader crypto market this morning. The smooth transition to a Proof-of-Stake (PoS) protocol would support a bullish session.
Ethereum Merge Countdown Underway with Under 120 Minutes To-Go
Less than 120 minutes remain until the biggest event of the 2022 crypto calendar. Today, Ethereum’s transition to a PoS protocol is expected to reduce the network’s energy consumption by 99.95%.
Significantly, the move to a PoS protocol will also remove the Ethereum blockchain from the scrutiny of US lawmakers, who continue to target Proof-of-Work cryptos for their carbon footprint.
As previously reported, the Merge is just the start. The network plans to carry out a series of upgrades to make Ethereum more scalable.
Ethereum (ETH) Price Action
At the time of writing, ETH was down 2.29% to $1,602. A mixed start to the day saw ETH rise to an early low of $1,654 before falling to a low of $1,584.
ETH needs to move through the $1,614 pivot to target the First Major Resistance Level (R1) at $1,674. Investor apprehension ahead of the Merge will need to ease to support a pre-Merge breakout from the Wednesday high of $1,649.
In the event of an extended rally, ETH could target the Second Major Resistance Level (R2) at $1,710. A seamless transition to the PoS protocol should support a breakout session. The Third Major Resistance Level (R3) sits at $1,806.
Failure to move through the pivot would bring the First Major Support Level (S1) at $1,578 into play. Barring another sell-off, ETH should avoid sub-$1,550 and the Second Major Support Level (S2) at $1,518. However, any delays or unforeseen problems with the Merge would bring sub-$1,500 into play.
The Third Major Support Level (S3) sits at $1,422.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 200-day EMA, currently at $1,639. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.
An ETH breakout from the EMAs would give the bulls a run at R1 ($1,674) and a return to $1,700. As previously stated, the Merge will need to take place seamlessly to support a breakout session.
However, news of any problems with the Merge would likely result in a sharp sell-off. A bearish cross of the 50-day EMA through the 100 and the 200-day EMAs would give the bears a run at sub-$1,500.