Alejandro Zala, Country Manager of Bitpanda Spainshared with Cointelegraph in Spanish, his weekly analysis of the cryptocurrency market regarding this week, and recalled that Global economics and geopolitical events are adding to the volatility of the cryptocurrency market, while price action appears to remain tied to the US stock market. Likewise, Zala has reported that the last seven days have passed without notable variations, with most of the main cryptocurrencies trending downwards and the total market capitalization hovering below one trillion euros.
A relevant point that Zala highlights in this report is about Ethereum, since According to him, the price action has moved around this cryptocurrency, due to the bullish investors waiting for the Merge, an event that will take place between September 13 and 15.
“Ethereum developers have already activated the “Bellatrix” update, which allows Ethereum node operators to be technically ready. The Bellatrix Hard Fork was activated at point 144896 on the Beacon chain. The purpose of this update is to ensure that validators produce up-to-date Beacon Chain blocks that will configure the code base prior to the merge.”Zala explained.
On the other hand, the Country Manager for Spain has described El Merge as the next step in the continuous evolution of Ethereum, as he explained that during the event, the existing layer will be merged with the newly implemented consensus layer (the Chain Beacon). “This merger will replace the Proof-of-Work mechanism with the Proof-of-Stake system, and will benefit from the trajectory of Ethereum and its current state,” he added.
In this sense, Zala has commented that the price of Ethereum has broken away from the falling wedge pattern and is now showing positive signs. “It could soon reach the level of 1,785 euros”he indicated.
“Earlier in the week there was a quick move above €1,650, but the bears had more weight. The next major resistance is near the €1,700 level, while on the downside, the first support is near the €1,500 level.”Zala described.
ETH/BTC Pair Gains Ground as Ethereum Outperforms
On the other hand, Zala also talked about the Ethereum Merge generating excitement in the market and the ETH/BTC price is moving towards new annual highs. “The ETH/BTC pair is currently at a level of 0.084, a new high and up around 10% so far in September”he stated.
According to Zala, Bitcoin’s underperformance relative to other cryptocurrencies, especially ETH, has caused its dominance to drop to record lows. “BTC dominance fell another 1% to close the week at 39%, the lowest since Jan 15, 2022. On the other hand, Ethereum dominance rose over 21%, the highest it has been in all year”he mentioned.
Bitcoin barely resists the support zone of 19,150 euros
Regarding Bitcoin, Zala stated that its price it has fluctuated in a tight range, oscillating between a resistance of 21,750 euros and a support of 19,150 euros. “During the last ten days it has operated with very low volatility. On Wednesday, the price of Bitcoin fell below the support of 19,150 euros, marking its lowest price since mid-July. However, the bulls managed to push the price back up again.”he highlighted.
The Fear and Greed Index stands at 20 points; levels of “extreme fear”
Regarding the sentiment of the market, Zala has said that it has remained in the territory of fear for the last five months, thus causing it to be the longest streak since the index’s inception in February 2018.
Cardano moves higher ahead of Vasil upgrade
Regarding ADA, Zala mentioned that it rose 10% in September, after announcing that Cardano Hard Fork upgrade Vasil is scheduled for Mainnet on September 22.
“Vasil is the most significant improvement to Cardano to date, bringing increased network capacity and lower transaction costs. The update will also bring improvements to Plutus, Cardano’s smart contract platform.”said.
That said, in his opinion, ADA price closed the week with a bullish weekly candle, which suggests that it could continue that trend. “The price is around 0.5 euros, the highest in the last three weeks”Zala stressed.
LINK outperforms major cryptocurrencies
Lastly, and surprisingly, Zala highlighted that in the last 10 days, LINK outperformed most major cryptocurrencies posting a 10% gain. “The price is close to the main resistance zone of 7.7 euros and is approaching a descending trend line. Bullish investors need to push the price above the trendline to reverse it.”said.
That said, and according to him, this price is likely to correspond to the latest Chainlink developments. “There were eleven integrations of three Chainlink services on five different chains: BNB, Ethereum, Phantom, Polygon, and Solana. Advances in an ecosystem are always a positive sign, as they reflect the efforts of developers to improve the network”he concluded.
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