Ether: Merge is supporting higher volatility

Regardless of the general market sentiment impacted by the latest macro fundamentals, the price of Ether continues to be supported by the forthcoming Merge fork, which is scheduled to occur within the next 10 days. This is not only evident through the spot price of ETH, but also on the crypto futures market, considering that within the last week, 57% of all trading was related to ETH futures.

Previous week ETH started above the support line at $1.4K. This level has not been tested, but the price of the coin was pushed to the upside and to the highest weekly level at $1.648. Still, the coin is ending the week above the support line at $1.520, which might be clearly tested at the beginning of the week ahead. Moving average of 50 days continues with its convergence toward MA200 counterpart. There is still some difference between two lines, in which sense, it would be too early to speak about potential golden cross, but the direction is positive. The RSI was moving between levels of 43 and 47, and is still not pointing that the market is ready for a move to the overbought side.

The Merge fork is coming within the next 10 days, which is a period of time when ETH`s higher volatility might be expected. A week ahead ETH will start around the support line at $1.520. Charts are currently pointing to a probability that the $1.4K support line might be tested for one more time in the coming period. However, if the current support line holds the selling pressure, then the ETH will revert to the upside and head toward the $1.7K resistance line.