Price action across the cryptocurrency market was mostly muted on July 21, as traders took a day to digest last week’s gains and book gains after the biggest relief rally since early June.
Amidst speculation about what caused the recent rally, the Ethereum merger has consistently topped the list. The market rally shifted into high gear after a tentative date of September 19 was set for the Mainnet merger.
Data from Cointelegraph Markets Pro and TradingView show that after touching a high of $1,620 on July 20, the price of Ether (ETH) returned to a low of $1,463 during early trading on July 21 and then rose above support at $1,500.
Now that the price spike triggered by the merger announcement has subsided, many analysts are expecting Ether’s mainnet transition to open up proof-of-stake methods.
A healthy pullback
Ether’s pullback on July 21 was a positive development, according to market analyst Rect Capital. Post The chart below highlights the importance of its weekly close at $1,300 and subsequent move higher.
Rect Capital said:
“While #ETH may continue higher to reach the upper orange area, ETH dipping is healthy. Such a retest of the lower orange area increases the likelihood of a continuation.”
The July 21 pullback coincides with this outlook and suggests a possible move up to $1,700 in the near future.
Note the sharp drop to $1,200
Ether’s modest re-entry from crypto trader and pseudonymous Twitter user Team Lambo is an expected development. provided The chart below shows a clear rejection at $1,630 and a 10% retracement.
The Lambo team explained in a Twitter post:
“Now the big correction will come below $1,440 and will almost certainly see a sharp drop towards $1,200 so stay tuned for that move for #Ethereum.
Related: What are the long-term goals for the Ethereum blockchain? Vitalik Buterin explains live at EthCC
A lower maximum and a higher minimum
A more nuanced analysis of Ether’s recent price action was provided by market analyst Cryptolines. Post On the chart below, the move on July 20 did not establish a new high, but the decline on July 21 did not establish a new low on the 4-hour chart.
Cryptolines He said,
“The last candle showed a long lower shadow line, which proves that demand has appeared. But the volume is not enough. Now see if the demand for this candle is sustained.
According to CryptoLinns, the current support level is at $1,450 while overhead resistance is seen at $1,630.
Crypto trader AltcoinSherpa has provided a final insight into the critical levels to watch on the Ethereum chart. Post The chart below identifies low-level support at $1,012 and $1,281 and overhead resistance at $1,701, $2,145 and $2,465.
The overall cryptocurrency market cap now stands at $1.039 trillion and Ether’s dominance rate is 18%.
The views and opinions expressed herein do not reflect the views of the authors and Cointelegraph.com. As every investment and trading move involves risk, you should conduct your own research when making a decision.