3 signs Ethereum price is on track toward $2.5K by September

Since June 2022, Ethereum’s native asset Ether has seen more than a double in value. It was at $885 in June 2022 when it peaked. It is now aiming to make a significant move towards $2,500 in August, thanks to a number of technical and fundamental indicators.

Split Ethereum chain means more tokens

The Merge, a network upgrade that will change Ethereum’s underlying blockchain protocol to proof-of work (PoW), has been a major factor in Ether’s continued rally. It will take place in September.

Simultaneously switching to PoS will eliminate miners from the chain and replace them with validators. Chandler Guo, a Chinese cryptominer, has decided to resist the Merge and keep Ethereum’s PoW version circulating.

As a result, a chain split is possible. Guo already labelled his version of Ethereum PoW as “ETHPoW” alongside its native token, “ETHW”. Binance is also considering listing the token for trading, and some crypto exchanges already have it.

The Ethereum Merge is near. Here are the details if you have $ETH on #Binance. Binance will support “The Merge”. We will review and evaluate new tokens and decide whether we support distribution or withdrawal. View details https://t.co/iuQSsXZ7fk
— Binance (@binance), August 10, 2022

One key conclusion from any potential chain split is that existing Ether holders will get an equal number of tokens from new chains.

This could increase ETH’s market demand, pushing its price towards the $2,500 mark during the Merge.

Bullish flipping underway

During its recent price recovery, Ether has confidently rallied toward a critical support-turned-resistance range of $1,625-$1,975.

ETH/USD is now aiming to retake this range as support. This will give it a strong price floor from which to seek a rally towards and above $2,000. The nearest upside target for ETH/USD is the 50-week exponentially moving average (50 EMA) at $2,000.

Weekly chart of the ETH/USD exchange rate. Source: TradingView

The Ether’ multimonth descending trendline resistance (the “black line”) at approximately $2,500 could be the next range breakout target.

Inflows into institutions gain momentum

Technical upside target $2,500 is based on recent capital inflows to Ethereum-based investment funds.

Similar: Optimism TVL rises almost 300% M/M before The Merge upgrade

These institutional products attracted $16.3million from investors during the week ending August 5. Similar Bitcoin funds saw capital outflows of $8.5 million during the same time period. This suggests a strong upside bias towards Ether over the top crypto.

Crypto funds have net capital flows. Source: CoinShares

The main bullish catalyst is the buzz surrounding the Merge, as we have already mentioned. Ether may experience a sharp price correction after the September upgrade to PoS, when traders could start to “sell news.”

com. You should do your research before making any investment or trading decision.

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