Ethereum finding bids again after the dive

Crypto Signals Brief for July 18: Will ETH Break Above $1,700 Ahead of the PoS Merge?

Posted Monday, July 25, 2022 by
Skerdian Meta • 2 min read

Ethereum finding bids again after the dive

Last Week’s Market Wrap

Cryptocurrencies had been consolidating for several weeks after the last crash by the middle of June, forming a pattern as they continued to bounce within the range. Ethereum (ETH) was bouncing between $1,000 and $1,300, while Bitcoin (BTC) Although, they continued to show some bullish signals, as they kept making higher lows.

By the middle of the week, we saw a decisive bullish move in the crypto market, as most cryptocurrencies broke above the resistance zone, despite Tesla selling 75% of its Bitcoin holdings. Since then there hasn’t been much followthrough by the buyers, but the price for most cryptos remains above the previous range, which is a bullish signal.

The Outlook for This Week

The fact that buyers haven’t pushed higher after the bullish breakout is not a positive thing, but they haven’t reversed back down either and continue to stay above the resistance zone, which is a positive thing. Toward the end of the week, Ethereum will launch the Merge upgrade, which might have a positive impact on the sentiment for the whole crypto market.

Crypto Signals Update

In the previous few weeks, we had a great run with our crypto signals, as we continued to trade the range, selling near the top and buying near the bottom. Last week though, we didn’t have much success trading cryptos as the breakout happened to the upside, although we will try to make up for it this week, especially if the bullish momentum picks up again in the crypto market.

Buy BITCOIN at the 50 SMA?

Bitcoin has been moving lower in waves since April, making a bearish move early that month to pause for some time and then resume the decline again. Although, the decline stalled and BTC was consolidating in a range for a month. But, that range was broken last week to the upside and now it seems like the 50 SMA (yellow) is turning into support, which looks like a good place to buy if it keeps holding.

BTC/USD – Daily chart

ETHEREUM Pushes Above the 50 Daily SMA

Ethereum was bearish as well for many months, falling below $1,000 by the middle of last month, but climbed back up above that level and the zone around $1,000 turned into support. Last week we saw a decent bullish move, as we approach the Ethereum Merge to proof-of-stake approaches, which will take the Ethereum development from 40% to 55% according to Vitalik Butterin. Although, Ethereum buyers are having trouble at the support and resistance level at around $1,700. Just above that stands the 100 SMA (green) which might as well provide some resistance, but let’s see how Ethereum will behave this week, ahead of the Merge.