Ethereum (ETH/USD) has recaptured $1,500. As of press time, the cryptocurrency trades at $1,550 after gains of 20% in the past one week. Technical indicators show that the cryptocurrency has overcome key resistance and is on its way to the next level (s).
Mike McGlone, Bloomberg Intelligence’s lead strategist, has attributed the strong ETH rally to the recent Ethereum Merge. McGlone says that the successful shift of Ethereum to proof-of-stake amid the global economic crisis positions it for growth. He also lauds Ethereum’s dominance in the digital financial revolution. He believes ETH is now in a bull market, and new highs should be expected.
Meanwhile, ETH’s price pump has commensurated with increased whale activity. Santiment data shows that a whale wallet moved 15,000 ETH or $22.2 million before the price surged. Whale Alerts has also reported the activation of a wallet containing 200 ETH.
But besides the developments, sentiment is getting boosted by the macroeconomic conditions. According to Edward Moya, a senior analyst at OANDA, economies are showing signs of a further slump. That has raised optimism that the Federal Reserve may tone down its economic tightening during the next FOMC meetings.
ETH clears $1,450 amid improved sentiment
Source – TradingView
On the technical front, ETH has moved above the resistance level of $1,450. The next resistance for the cryptocurrency lies at $2,000. However, the area around $1,750 could also offer a minor resistance. Investors should hold to the mentioned level (s) based on the prevailing sentiment.
The relative strength indicator shows that ETH is overbought. A likely correction could occur back to the resistance-turned-support.
Should you buy ETH?
A strong rally for ETH price shows investors are readying for the cryptocurrency’s surge post-Merge. Macro sentiment and expectation are also boosting the token.
In the short term, ETH could continue to rally, potentially to $1,750 and $2,000. However, with a looming correction, investors may look to snap the token at or close to $1,450. A dovish FED next month could be the catalyst for a stronger rally and vice versa.