ETH Backpedals After Hitting $1,800 Ahead Of Merge Last WeekJet EncilaNewsBTC

ETH Backpedals After Hitting $1,800 Ahead Of Merge Last WeekJet EncilaNewsBTC

As the integration has progressed, Ethereum’s price has slid precipitously. Since the general financial markets are facing a period of extreme pessimism, ETH could continue to fall over the next few days.

On the morning of September 15th, the Merge went into effect. The price of ETH dropped 11.91 percent during the day, wiping off all of the gains it has made since September 14.

The outlook for ETH after the integration is bleak because it suggests the crypto winter will continue through the summer months.

In the time after this article was written, the coin’s price has found support near the 61.80 Fib level, at around $1,329.91. A portion of the Donchian channel’s lower section has also been explored by the bears. This shift indicates a deeper descending pressure.

ETH Rebound Still A Big Possibility

ETH’s recovery is feasible, but only in the far future, as the Merge raised more concerns than it answered, and the broader financial markets are still battling to reestablish confidence.

A positive outlook for Ethereum’s future is something this occasion is meant to instill in traders and investors. Traders and investors, however, believe that the proof-of-stake system is a wrong turn for ETH.

According to a post in r/CryptoCurrency on Reddit, the proof-of-stake mechanism benefits the wealthy at the expense of the poor. Investors and dealers are under increased pressure to sell because of the combination of current market circumstances and skepticism surrounding the upgrade.

Momentum and stochastic RSI indicators reveal this information. The present convergence of the Stoch RSI is bearish, indicating that investor sentiment is at an all-time low.

Ethereum Bulls Feeling The Pain

Additionally, ETH’s momentum is a staggering -410.90. The bulls are experiencing anxiety in the broader financial markets and the Merge.

Ethereum also closely follows Bitcoin. As of the time of writing, the correlation coefficient is 0.69, indicating that the price fluctuations of the two closely track one another.

With the crypto market on a downward trend, it is easy to assert that ETH’s investors and traders are in it for the long haul.

Gary Gensler, chairman of the Securities and Exchange Commission, stated that staking might classify Ethereum as a security, exposing ETH to legal difficulties.

Ethereum is not, however, the only cryptocurrency that uses proof-of-stake. ADA, SOL, and DOT are based on the proof-of-stake protocol.

If Ethereum is categorized as a security, the other currencies could be subject to regulatory investigation, leading to additional price declines for Ethereum and other proof-of-stake currencies.

In the short run, $1,329.91 has proven to be a price level that can survive a bearish assault. Only time will tell whether Ethereum will rebound from this decline.

ETH total market cap at $164.5 billion on the daily chart | Source: TradingView.com

Featured image from Coinpedia, Chart: TradingView.com

(The analysis represents the author’s personal views and should not be construed as investment advice).NewsBTC

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About the Author: Jet Encila