Ethereum has been showing some incredible bullishness over the last few days, this is as the proof-of-stake (PoS) transition draws closer, and the news of ether tokens being burned ahead of the upgrade. Over US$5 billion in ether has been pulled out of circulation through the implementation of the burn. The Merge phase could put deflationary pressure on ETH over time. In the past week, the price of ether has gone from US$2,500 to US$3,000, and more importantly, it has broken the daily descending resistance line coming from November 2021.
Currently, the price is ranging between support at US$2,830 and resistance of US$3,000. As the PoS event draws closer, and together with the ongoing burning of tokens, the price is expected to move higher over the next couple of weeks. Important resistance levels to watch out for are at US$3,300, US$3,600 and the 0.618 Fibonacci retracement at US$3,800.
This week, we have seen a significant trend change in the ETH/BTC chart, as ETH is now starting to outperform BTC. The descending daily resistance trend line from December 2021 has also been broken, indicating that money is now flowing into ETH and the other major alts.
The price is currently on the 7,000 SATs support line, and the expectation is for ether to carry on outperforming bitcoin over the next couple of weeks. Areas of resistance are at 7,500, 8,000 and 8,500 SATs.
This week, we saw the ETH Dominance in the market break out of the daily resistance line coming from December 2021. This is also a good indicator that cash is now flowing into ETH and into the other major alts. A further rising ETH dominance is extremely bullish for the alternative coin market, and sets the tone of a potential looming altcoin rally.
It has been an exciting week for Ethereum and also for certain altcoins, indicating that there may be more bullishness ahead of us over the next coming weeks.