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

Christian Encila

Last Updated: September 20, 2022 1:08 pm

2 mins read

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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).

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.