Ethereum had been trending upwards since mid-July with minor breaks. In the past week, the cryptocurrency faced a consolidation period and as per predictions reached upwards in the recent timeframe. At the time of writing, ETH stands at a price level of $2,604. It has crossed the dreaded resistance at $2,500 which may indicate boosted bullish momentum in the upcoming days. In the weekly timeframe, the second largest coin has gained by 14% while the daily growth is nearly 4%. The daily trading volume has, however, declined by almost 20%.
The market sentiment for Ethereum is bullish given the current uptrend. Fifteen of the total twenty-six technical indicators are standing at a position of buy. Ten indicators of the rest are giving out a neutral indication with only one indicator at a sell signal. Both the oscillators and moving averages are bullish.
Ethereum coin had been operating on an uptrend with the trendline acting as strong support. The trendline has supported the cryptocurrency till now and Ethereum had not broken lower than the support. However, the past week resulted in a break out to the downside for the cryptocurrency amidst bearish momentum. But all hope is not lost for Ethereum yet as the recent price action still shows the supporting trendline may still have strength. In the five-hourly timeframe, the cryptocurrency is reaching for the trendline. If the trendline is again established as a strong support, bullish momentum can be expected from the cryptocurrency.
Can Ethereum’s upgrade strengthen the bulls?
The bullish momentum in the recent timeframe can be attributed to an upgrade – EIP-1559 – which is set to go live on 5th August. While the cryptocurrency community is excited for ETH 2.0 upgrade, EIP-1559 is also expected to result in a price boost. The Ethereum Improvement Protocol 1559 will decrease the price volatility in the gas fees on the network – making them more predictable. Moreover, the upgrade will also burn ether. The decreased supply of ether with more predictable gas fees can potentially result in a price surge and restoration of bullish momentum. The bullish predictions may be achievable for the coin with such momentum.