Ethereum price is just one step away from regaining its position above $2000, which is expected to happen over the weekend. A number of technical and fundamental indicators support Ethereum to gain momentum to $2,500 by September.
These 3 indicators show Ethereum price moving towards $2,500
Ethereum has more than doubled since it dropped to around $885 in June 2022. Much of the ongoing rally comes from the excitement of the upcoming merge. The network will switch from basic PoW protocol to PoS in September. The move to PoS radically changes the mechanism of Blockchain by replacing miners with validators. Thus, the role of miners in Ethereum will completely disappear.
While PoS Blockchain has caused concerns, initial support for the new Ethereum fork tokens came from Binance. As you follow on Kriptokoin.com, Binance, the world’s largest cryptocurrency exchange, announced that it will support new Ethereum fork tokens.
The Ethereum Merge is approaching.
Here's what you need to know if you hold $ETH on #Binance:
🔸Binance will support “The Merge”.
🔸In case of newly forked tokens, we will evaluate and consider support for distribution and withdrawal.View details ⤵️https://t.co/iuQSsXZ7fk
— Binance (@binance) August 10, 2022
An important consideration in a potential Blockchain split is that existing ETH holders receive an equal amount of tokens from new chains. This increases the demand for Ethereum. Analyst Yashu Gola cites this as the first catalyst that will push the ETH price to $2,500.
ETH continues its positive price movements
During the recent price recovery, ETH confidently rallied towards the resistance range, which turned into the critical support of $1,625-1,975. It now aims to reclaim the range as support. Thus giving it a strong price floor to sustain a rally to $2,000 and above. Its closest upside target is $2,340, the 50-week exponential moving average. The target of the bulls’ next breakout is at around $2,500 at ETH’s multi-month descending trendline resistance (black line).
Institutional listings gain momentum
The $2,500 technical upside target is taking cues from the recent surge in capital inflows into Ethereum-based mutual funds. Notably, these institutional products attracted $16.3 million from investors in the week ending Aug.
Overall, the hype around merge acts as the main ascension catalyst as mentioned above. However, Ethereum could see strong price corrections following the upgrade to PoS in September, when investors started potentially “selling the news.” However, short-term targets point to Ethereum getting in the run for a while.
It will bring the price of Ethereum to $ 3,000 in 10 days
With Merge fast approaching, a number of testnets and several testnet upgrades went live without any problems. In a recent update, Goerli, the last testnet before the mainnet merger, merged with the PoS consensus.
And there we go! Goerli has merged 🐼 🥳
Shout out to all client teams, contributors and the whole #Ethereum ecosystem – what a moment to share with you all! #TheMerge is next
— Nethermind (@NethermindEth) August 11, 2022
Secondly, another catalyst driving ETH price closer to $3000 is the upcoming Triple Halving. Much like Bitcoin, the Ethereum halving will reduce miners’ rewards by 33%, up to 3x. Thus, Ethereum will become more deflationary than before. This event is scheduled to take place in the next 30 days.
Coming to the numbers, the halving will reduce the annual emission of new ETH from 4.3% to 0.43%. In simple terms, ETH production will drop from 13,000 to 1300 per day. Additionally, the transition from PoW to PoS will begin with ETH staking rewards. As a result, analyst Sahana Vibhute says that EIP 1559, which burns ETH on every transaction, will accelerate the ETH rally.
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