As the Ethereum Merge is set to commence on Wednesday night, investors are keen to speculate where the ETH price will go. ETH price action had been in a steady freefall throughout August, but the first week of September saw those losses reclaimed. ETH technical analysis over the past month will give investors better insight into market sentiment over the Merge.

Ethereum price chart

Since August 1, ETH declined about 22%, from just over $1,800 to $1,400. With bullish resistance since September 1, it has regained most of the August losses, pushing the price back up from $1,400 to $1,742 in one week. 

Image courtesy: Messari.io

The beginning of September saw an ascending triangle, signaling bearish resistance against the uptrend. Yet, resistance levels continued to rise throughout the first week of September as the bottom price points lifted, forming the rising triangle. 

This signals that the market is optimistic about the Merge overall. By Labor Day, ETH had achieved the $1,742 price point, recapturing a full 97% of the August selloff.

Ethereum price analysis

The first week of September also saw a rare triple top formation. This indicates a reversal is likely to set in; indeed there was a decline as of Monday morning, September 12. 

However, the spread between these tops and bottoms is only about 0.013%, indicating optimistic sentiment again. Market sentiment continues to be positive into this week as there is strong overall support for the uptrend in both the weekly and daily charts.

Image courtesy: Messari.io

Lastly, the daily chart from September 12 has another triple top followed by a strong selloff; but the drop to $1,700 did not last for long as bullish investors continue to hold ETH around the $1,725 price point. Nor was this price drop anywhere near the early August selloff of 22%.

Image courtesy: Messari.io

The dips in the overall uptrend of ETH’s price indicate that investors may be selling off at certain peaks to yield earnings before the Merge. Investors will often sell at certain price points and reinvest the profits when a drop occurs, thus multiplying their earnings.

Overall assessment

Despite uncertainties about the Merge’s impact on other blockchain technologies built on the Ethereum network, technical analysis of ETH shows the market is overall optimistic. There is a general uptrend with the bulls firmly in control of the rising ETH price action.

The changeover from Proof-of-Work to Proof-of-Stake is thought to strengthen the network’s infrastructure, efficiency, and security. Since a rising tide lifts all ships, coins from Ethereum-based blockchains are likely to follow suit.  

BCCN3 will continue to watch ETH price action as the Merge commences this week.