Ethereum Merge Fails To Move ETH Price, $2,000 Remains Elusive
16 September 2022 - 1:00AM
NEWSBTC
The price of Ethereum continues to struggle below $1,600 despite
the Merge being successful. As pointed out previously, the Ethereum
Merge had looked to be a “buy the rumor, sell the news” event,
which seems to be playing out, but the lack of highly fluctuating
prices suggests that even the expected sell-offs seemed not to have
happened. Instead, it looks to be that momentum is currently muted,
making it impossible for the price to swing either way. Merge Is
Priced In During the rallies that led up to the Ethereum Merge,
there were debates on whether the upgrade had been finally priced
into the value of the digital asset. At one point, ETH had rode the
wave up to $2,000 but quickly lost its footing. Given this, it was
a matter of what would be best for the digital asset. Related
Reading: Bitcoin ETF Inflows Returns After Abysmal Phase Now, after
the Merge has been completed, it seems more settled that the price
had already been priced in. For market analyst Julius Baer, he says
that the best-case scenario would have been for the Merge to end up
being a non-event. If this is true, then the current resistance to
any sort of significant movement on the part of the digital asset
is a good thing. Merge fails to move ETH price | Source:
ETHUSD on TradingView.com However, it is concerning that such a
highly anticipated event seemed to have no bearing whatsoever on
the price movement of the digital asset. But the market decline
that followed the release of the CPI data earlier in the week has
likely led to fatigue in the market. Can Ethereum Rebound
From Here? Before the Merge, the price target from Ethereum had
been $2,000, given the upward momentum that was recorded during
that time. However, the dip in price has put the digital asset in
an especially difficult position. With the price dropping to the
$1,590 territory, the cryptocurrency is unable to properly clear
important technical levels like the 50-day moving average.
Additionally, the 100-day moving average looks worse. This spells
the likelihood of more bearish movement over the next week. Related
Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000
The sell-offs have also not eased over the last couple of weeks.
Ethereum had recorded massive exchange inflows leading up to the
Merge, bringing the 7-day inflow volume to $11.52 billion. This
large inflow volume, coupled with the decline below the 50-day
moving average, has caused the 50-day MACD to skew heavily towards
the selling pressure. The next major support level for the digital
asset now lies at $1,500. However, a failure to properly hold this
level will likely see Ethereum test the $1,300 territory once
more. Featured image from CNBC, chart from TradingView.com
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