Chainalysis anticipates a strong price rally after the Ethereum merger
The soft date for the merge is 19th September
Ethereum is rising and $2,000 . looks set back
According to Chainalysis data, Ethereum will lead other cryptocurrencies in price after the ETH/USD merge. The on-chain analysis firm says the post-merger yield will attract institutional investors. Chainalysis says that increased institutional penetration could make Ethereum challenging Bitcoin for the top spot.
Amidst the Chainalysis report, the Ethereum ecosystem is on the rise due to the expected merge. Institutional stakeholders increased from 200 in January 2021 to the top 1,000 at the end of last month. Increased institutional inflows indicate growing confidence in blockchain post-merge.
Ahead of the merge, which is expected around September 19th, Ethereum is recovering. At press time, the cryptocurrency was trading up 8.12% in 24 hours and was holding onto $1,630. Ethereum developers finalized the first two-stage process in the merge on 6 September. This could give a boost to the bullish momentum we are currently seeing.
Ethereum Begins Recovery Before Merge
Technically, Ethereum is lacking a directional movement after the 50% retracement level from the $2,000 level. Nevertheless, the price can be considered bullish in a broadly bearish market. The 20-day moving average has joined support. The coin is still trading below the 50-day EMA. The RSI shows that ETH is neither overbought nor oversold.
While Ethereum is gaining momentum ahead of the expected merge, it lacks a directional movement. We cannot say with certainty that the price will rise to $2,000 in the next few days. Nevertheless, with the benefits of the expected merger, Ethereum remains a cryptocurrency to hold. Investors should monitor price movements for potential buying retracements.