A series of pro-crypto updates kept ETH/USD above $2,500 this week.
Can the bulls find enough momentum to push Ether to $3,000?
ETH/USD started the year by breaking its months-long uptrend and now the pair is consolidating in a symmetrical triangle below the daily chart’s 100 and 200 SMAs.
ETH bears had another chance to make new 2022 lows earlier this month when war concerns in Ukraine dragged “risky” crypto bets lower across the board.
Luckily, a couple of news updates kept ETH/USD supported at around $2,500.
ETH/USD: Daily
ETH/USD Daily Crypto Chart
For starters, optimism around peace talks between Russia and Ukraine has encouraged risk-taking in the markets.
And then there’s the Ethereum testnet Kiln going live last week. For newbies out there, Kiln is simulating the merger between Ethereum’s proof-of-work (PoW) blockchain and the Beacon Chain using proof-of-stake (PoS) mechanism. Kiln is the last public testnet before the Ethereum network fully transitions to PoS consensus later this year.
The European Union (EU) has also just voted against requiring proof-of-work blockchains such as Bitcoin and Ethereum to switch to more environment-friendly mechanisms. Eth2 is already working on transitioning to a proof-of-stake mechanism but parliamentary vote has eased some pressure on the transition timeline.Last but not least is Ethereum application and infrastructure builder ConsenSys closing another $450 million in its latest funding round. Ethereum and Consensys founder Joseph Lubin shared that the bulk of Consensys’ treasury would be converted into ETH in anticipation of Ethereum’s upcoming merge to proof-of-stake.
If risk-taking continues in the markets, then traders could pay closer attention to the Ethereum network’s latest developments.
ETH/USD could bounce from the symmetrical triangle support and reach for the $3,000 handle closer to the triangle’s resistance and the daily chart’s 100 SMA. A lowkey bullish divergence should also encourage some bulls from stepping in.
Of course, risk sentiment could take a turn and extend ETH/USD’s 2022 downtrend.
I’ll be keeping close tabs on peace negotiations in Ukraine as well as global growth concerns brought about by China’s latest lockdowns and the Fed’s anticipated interest rate hike.
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