Ethereum price remained range-bound on Thursday; the third session in a row. The eased movements are largely founded on the crypto enthusiasts’ focus on the software upgrade scheduled for 6th September. Even with this bullish factor, the Fed’s hawkish stance remains a crucial driver in the broader cryptocurrency market. In particular, traders are eyeing the US nonfarm payrolls set for release on Friday.
Fundamentals
Shifting the Ethereum blockchain from “proof of work” to “proof of stake”, commonly referred to as the merge is one of the key bullish drivers of Ethereum price. If it goes as planned, it will have the Ethereum blockchain shift from the energy-intensive model. Even so, some are concerned over the safeness of the proof of stake structure.
While the merge is a highly anticipated event, traders are also keen on the US nonfarm payrolls on Friday. The labor market remains impractically strong, which is one of the areas of concern for the Federal Reserve.
In the past week, Jerome Powell reiterated the central bank’s priority to deal with inflation via aggressive measures. Notably, an environment of high interest rates has fostered a risk-off mood thus weighing on Ethereum price and other cryptocurrencies.
Ethereum price prediction
For over a month now, ETH/USD has held steady above $1,373.56; a support level that had been a major resistance point for the altcoin since mid-June. In the short term, I expect it to remain above the aforementioned level with the software upgrade being a major bullish factor. Indeed, a move below it will invalidate this bullish thesis.
In the immediate term, the range between $1,492.96 and $1,627.30 will be worth watching. Granted, strong US jobs data may yield a pullback past the range’s lower border before rebounding. On the upside, the upgrade may boost Ethereum price to $1,746.71 as the bulls seek to retest August’s high of $2,000.
