Ether Technicals Hints At Ultra-Bullish Breakout As “The Merge” FOMO Kicks In

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Ethereum technical indicators are generally sitting at neutral positions, following a week of promising performance by the digital asset as we delve into a new week with a favorable outlook in the crypto space.

Ethereum’s RSI currently has a last value of 51

Per data provided by community-driven crypto analytics platform CryptoQuant, Ethereum’s Relative Strength Index (RSI), which indicates whether the asset is overbought or oversold, currently has a last value of 51, which is in the neutral territory. A month ago, Ethereum’s RSI was hitting values around the 38-mark.

An asset is overbought when its Relative Strength Index is above 70 and oversold when the value is below 30. The territory between the values of 30 and 70 is considered neutral.

Additionally, the Stochastic value for Ethereum is 67.4 – again, indicating a neutral position for the asset. The Stochastic oscillator generally ascertains the momentum of an asset’s price movements. It is mostly used to identify any potential price reversals in the asset.

Ethereum has been flirting with the $1.2k mark since the start of July. Despite its recovery from the crippling lows of the previous month, the highest value the asset has reached this month is $1,630. However, with most technicals indicating improving values, the future might not be as bleak for Ethereum.

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The Merge is set to be fully launched in August of this year

The Merge, which will see the Ethereum blockchain transition from a Proof-of-Work consensus mechanism to Proof-of-Stake, is one of the most anticipated events in the crypto community. The Merge is set to be fully launched in August this year, but preparatory upgrades are already underway.

On 6 July, Sepolia, a major Ethereum testnet, most recently transitioned to proof of stake. The Sepolia upgrade marked the second to last update to the Ethereum blockchain before the imminent advent of The Merge.

Barely a week before this, the Ethereum team announced the “Gray Glacier” network upgrade, which occurred at block 15,050,000 on 30 June. The Gray Glacier upgrade pushed the network’s difficulty bomb back by 700,000 blocks, or 100 days, as the developers prepared the chain for the transition to proof of stake.

ETHUSD Chart by TradingView

Ethereum (ETH) currently trades at $1,601 as of press time. The asset has seen a surge of 19% in the past seven days and an upsurge of 6.09% in the last 24 hours. While this seems like a disappointing performance compared to its all-time high of $4,891 in November of last year, the asset has held up quite well in these troubling times and appears set for an upsurge this quarter.