Ether price stagnates at $1,630 after gaining 50% in less than a week

ETH price stagnates after a week of gains, leading analysts to call for a short-term pullback followed by a rally in September when the Mainnet merger is scheduled.

Market Update

Price action in the cryptocurrency market was largely subdued on July 21 as traders took a day to digest last week's gains and book profits after the biggest relief rally since the start June.

Amid speculation about what drove the recent rally, the Ethereum merger has consistently topped the list. The market rally kicked into high gear after a tentative date of September 19 was set for the mainnet merger.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a high of $1,620 on July 20, the price of Ether (ETH) fell back to a low of $1,463 in early trading hours on July 21 and has since recovered above support at $1,500. .

ETH/USDT 1-day chart. Source: TradingView

Now that the initial price spike caused by the merger announcement has subsided, here's what many analysts expect to unfold as the transition from the Ether mainnet to proof-of-stake approaches.

A healthy setback

Ether's July 21 pullback is a positive development according to market analyst Rekt Capital, who released the following chart highlighting the importance of its weekly close above $1,300 and subsequent rise .

ETH/USD 1 week chart. Source: Twitter

Rekt Capital said:

"While #ETH may just continue higher...