Mergetember is upon us
The Ethereum Merge is set to occur on 15th September and is sandwiched between releases of key economic data around US inflation and interest rate decisions from BoE and ECB.
The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.
The Merge recapped
To understand exactly what the merge is, please review an earlier article HERE.
There will be plenty of interesting extractable value (EV) games to play out especially within the first few blocks after the merge has occurred. We urge all our readers to contact their Stormrake crypto broker this week in order to prepare for the merge.
You can have all your trades planned out and all your orders communicated to your broker, this will ensure seamless execution and prevents any FOMO.
Let’s trade!
BTC/USD key levels
We referenced how pivotal the $19,560 USD key level will be in our previous Morning Note. Over the course of the weekend, the level did its job and held the line. If this level is breached and we don’t get a sharp retrace back above it, we can expect a quick move down to the 18.9k to 18k support pocket.
Majority of the momentum and narrative sits with Ethereum at the moment, for Bitcoin to head higher it will require a technical push above 21k with some sort of outside catalyst to spur attention. Our thinking on the trading desk is that it will come form Fedi Mints. We will cover that protocol in greater detail soon.
Watch this space.
ETH/USD key levels
As expected Ethereum is showing far more strength relative to Bitcoin due to the upcoming merge. In terms of price action $1,559 is a key decision level this week, holding above it and putting in a strong base will put forward a bullish case for ETH. The next major level of resistance to get through will be 1,700. If we get a daily close above 1,700 then we can anticipate a sharp move to 1879. The downside risks are pretty clear, if it loses 1,422, then we can quickly teleport to 1241 and then 1,003 where the real support kicks in. It’s all narrative driven at the moment and the success of the merge will ultimately dictate price action. Follow us on TWITTER to stay up to date.
Macro watch
Relatively quiet week ahead with the only material impacts on AUD pairs due to trade balance, GDP and interest rate decision all coming out this week. The lack of large macro events in the calendar this week just means that crypto native narratives have more room to grow and run, as they usually get impeded by a larger macro catalyst.
Disclaimer
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