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ETH merge leads to recovery in the crypto market, ETH is expected to break through 2000 USD.
The crypto market is experiencing a phase of recovery, and a new round of market trends can be expected.
Recently, both the traditional financial market and the crypto market have shown positive signs. The U.S. July CPI data came in below expectations at 8.5%, a decrease from last month's high of 9.6%. This suggests that inflationary pressures may be easing, and the market has reacted positively to this.
From the perspective of wealth loss, this year's crypto market decline is more severe than in previous years. The collapse of Luna and the chain reaction led to a market value evaporation of over 70 billion dollars. However, this also means that a large-scale sell-off is unlikely to occur again in the short term, and the bottom may have already formed.
The current crypto market is highly correlated with traditional financial markets. As risk appetite returns, the crypto market is also showing signs of warming up. However, Bitcoin may lag behind some altcoins with clearer narratives.
Ethereum leads the rally with expectations of the merge. ETH below $1800 is worth buying, unless it falls below the support level of $1650. ETH is expected to break through $2000 during the merge in mid-September.
Dogecoin and other meme coins have recently shown unusual movements, which may indicate that a new round of market trends is about to arrive. However, it may also just be a rotation in the rebound of the bear market.
Solana is expected to improve performance after the network upgrade, and technically, $48.5 is a key resistance level.
Chilliz continues to make strides in the sports fan economy, with the potential to dominate the NFT + sports market. Technically, $0.30 is a strong resistance.
Overall, the worst period of the market may have passed. It is unlikely that new lows will occur before the Ethereum merger. Investors can focus on mainstream assets like ETH and SOL, as well as meme coins like SHIB and DOGE. The market is expected to maintain a good momentum in the coming month, and if the macro environment improves further, new investment opportunities will arise.