Ethereum Price Looking At Possible Downward Shift – More Headaches Ahead For ETH?

Christian Encila

2 years ago

3 mins read

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The post-Merge landscape of Ethereum took many by surprise; the figures and the outcome weren’t something they had in mind.

Bad macroeconomic conditions and other negative factors overshadowed what was expected as a breakthrough. It was, in some ways, but the fanfare pre-Marge was so hyped up, until a few days following the event.

The optimism that had been building up in the days leading up to the CPI report, which ultimately brought down the broader financial markets, was wiped out in the fall on September 13.

Ethereum (ETH) Feeling Fed Hike Stress This Early?

As of this writing, Ether was down as it was reported that a further 75 basis point hike in interest rate by the U.S. Federal Reserve is possible in November if economic conditions don’t improve.

ETH, this early, could be starting to get stressed with the Fed’s looming rate bump. The chart suggests that ETH may be in for more losses, but what does it actually show?

Chart: TradingView.com

If the graph is any indication, things aren’t looking so rosy.

Since September 19th, the altcoin has traded between $1,408.15 and $1,219.29, with support located at the 61.80 percent Fibonacci retracement level, now at $1,265.02. The bull bear power indicator has formed a downward pointing at the time of writing.

This may indicate that it will be even more challenging for prices to rise above the $1,384.77 resistance level. Since September 15th, the center of the Bollinger Band has been providing dynamic resistance.

The indicator also revealed the formation of a crunch zone, making a price move over $1,384.77 more difficult.

The 20-day to 250-day simple moving averages are all acting as resistance levels, adding to the downward pressure on the altcoin.

The intraday chart displays a falling triangle formation. In light of the aforementioned, this may indicate to investors and traders that a further correction may occur in the near future.

With present market pressures, a market correction might push the price down to $1,220.35, a 10% decrease.

Speculative Bullish Run – How This May Transpire

If the support at $1,265.02 holds, the resistance at $1,384.77 could be retested. This hypothetical rise is supported by the Chaikin money flow index, which indicates the market is still dominated by buyers to some extent.

Bullish investors can use the CMF as a springboard and a strength boost for the previously mentioned weak support line. Even if the momentum indicator is bearish, it is creating a slow rise.

These variables can assist the price eventually reach the $1,384.77 resistance level and break through it, allowing a rebound to occur. If today’s trading session ends on a poor note, investors and trailers can participate in the price rebound by buying the dip.

ETH total market cap at $162 billion | Featured image from Kryptografen, Chart: TradingView.com

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.