Ethereum Price Witnesses Sudden Spike; Crosses $1600 Resistance Level

• If it finds support between $1,600 and $1,620, the price may continue to climb. 
• The price of Ethereum has witnessed a sudden spike, breaching the $1600 mark.

The Merge update to Ethereum’s core protocol was a watershed point in the cryptocurrency’s history, marking a transition away from the inefficient proof-of-work (PoW) consensus mechanism in favor of the more energy-efficient proof-of-stake (PoS).

Ethereum’s compliance with the strict criteria imposed by the Office of Foreign Assets Control (OFAC) has decreased post this change, which was anticipated given the greener future this move promises.

Moreover, according to IntoTheBlock’s data, the percentage of empty wallets has increased by almost 13% in the last week. This is another warning indication that indicates a large number of people have liquidated their token holdings.

Bulls Take Over

The price of Ethereum has witnessed a sudden spike, breaching the $1600 resistance level at the time of writing. If it finds support between $1,600 and $1,620, the price may continue to climb. 

If ETH manages to break over $1,620, there is a good likelihood that it will continue to rise. Substantial barriers might be expected close to $1,650 and $1,660. The price may begin a respectable ascent towards the $1,720 barrier if the bulls are successful in breaking over the $1,660 level. More growth might pave the way for a price increase all the way till $1,800.

Ethereum’s price may likely drop if it is unable to break below the $1,620 barrier level. Near the $1,580 mark is where next support could be found. If the price drops below $1,565, it may try to find support around the $1,540 level. There is a risk of a precipitous drop if the bulls can’t hold the $1,540 level.