Last weekend saw a sudden spike in the price of Ethereum as the coin started showing signs of revival due to a short squeeze and the news of a proposed merger.
What caused an Ethereum price breakout?
From July 13 to July 16 the price of Ethereum rose around 40%. The primary reason behind the price rally is attributed to the euphoria around the planned merger.
The major price rally was seen on Saturday however the news did not ease the volatility sentiment in the market. The price of Ethereum continued to fall by an average of 1.8%. The price failed to break out of two strong resistance levels and subsequently settled for around $1328. The two resistance levels were formed during a 50 day period and they had resulted in a price ceiling in May.
Apart from this there was a massive short squeeze of Ethereum in the futures market. Nearly $ 97 million worth of bets were taken out in the period of one hour. This short squeeze resulted in the price of Ethereum rising by around 12%.
What is the future of Ethereum
Analysts believe that if the price of Ethereum could successfully break the $1500 barrier it could eye for a target of $2000. This would lead to the price of Ethereum crossing the June high of $1972. However in case the planned September merger fails to fortify, the price of Ethereum could go for a toss.
According to analysts the price of Ethereum rallied higher than 40% and subsequently broke the critical horizontal pattern. This is regarded as an ascending triangle pattern. A bullish reversal is always followed by a continuation pattern referred to as an ascending triangle. However there are a few exceptions wherein they have also ended into a downturn.
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