Skip to content Skip to sidebar Skip to footer


As the integration progressed, the price of Ethereum fell precipitously. Given that the general financial markets are facing a period of extreme pessimism, ETH could continue to decline over the next few days.

On the morning of September 15, the merger went into effect. The price of ETH fell 11.91% during the day, erasing all gains made since September 14.

The outlook for ETH post-integration is bleak as it suggests the crypto winter will continue into the summer months.

In the time since this article was written, the price of the coin found support near the 61.80 Fib level at around $1,329.91. Part of the lower section of the Donchian Channel has also been explored by bears. This change indicates deeper downward pressure.

ETH Rebound Still a Big Possibility

The recovery of ETH is possible, but only in the distant future, as the merger has raised more concerns than it has answered, and the broader financial markets are still struggling to restore confidence.

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

According to an article published in r/CryptoCurrency on Reddit, the proof-of-stake mechanism benefits the rich at the expense of the poor. Investors and dealers are under increased pressure to sell due to the combination of current market circumstances and skepticism surrounding the upgrade.

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

Ethereum bulls are feeling the pain

Moreover, the momentum of ETH is staggering -410.90. The bulls experience anxiety over the broader financial markets and the meltdown.

Ethereum also closely follows Bitcoin. At the time of writing, the correlation coefficient is 0.69, indicating that the price movements of the two follow each other closely.

With the crypto market trending down, it’s easy to argue that ETH investors and traders are in it for the long haul.

Gary Gensler, chairman of the Securities and Exchange Commission, said staking could classify Ethereum as a security, exposing ETH to legal trouble.

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

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

In the short term, $1,329.91 has proven to be a price level that can survive a bearish assault. Only time will tell if 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).



Source link

Leave a comment