3 reasons why Ethereum price can still retest $3K this month
Ethereum's native token Ether (ETH) could reach back to $3,000 in March, backed by a mix of short-term technical, fundamental, and on-chain catalysts.
The first interim bullish outlook for Ether ironically comes from a bearish continuation pattern
Notably, ETH's 50%-plus decline from its all-time high of around $4,650 on Dec. 2, 2021, followed up with forming a consolidation channel called a symmetrical triangle. Hence, the Ethereum token has been fluctuating between a falling upper trendline and a rising lower trendline since the beginning of this year.
ETH/USD last retested the triangle's lower trendline as support on March 14 near $2,500, following a sharp correction after finding sellers near the 20-day exponential moving average (20-day EMA; the green wave in the chart above). S
ince then, ETH's price has rebounded by as much as 9.26%, closing above the 20-day EMA resistance on March 16 to reach almost $2,750.
A decisive rebound move, accompanied by a rise in trading volumes, could have Ether eye the triangle's upper trendline as its next upside target near $3,000.
On March 15, Ethereum developer Tim Beiko announced that they have successfully tested the "Merge" on the Kiln testnet, raising speculations that the protocol would completely switch from proof-of-work (PoW) to proof-of-stake (PoS) in Q2/2022.
And it seems to have worked Post-merge blocks are being produced by validators, and they contain transactions! https://t.co/xearnsuZFpJust waiting on finalization now https://t.co/BEfJOI4qqj pic.twitter.com/c4p1UXB5vw
The euphoria around the Merge has acted as one of the main bullish prospects behind Ethereum's growth since the introduction of its first consensus layer upgrades in December 2020.
Arcane Research noted in
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