- Ethereum price is the 200-week moving average.
- The volume during the current selloff is relatively sparse.
- Invalidation of the bearish thesis is a breach above the September 11 swing high at $1.7
Ethereum price could fall further if market conditions persist.
Ethereum price could lose its leg.
Ethereum price has yet to retaliate against the bearish onslaught experienced this month. Since September 10, the bears have forged a steep decline suppressing any attempts for a V-shaped retaliation. The downtrend fuels the newly developing bearish sentiment surrounding the Ethereum Merge.
According to Tomshardware.com, nearly the entire industry of GPU miners may be headed for extinction as the Merge means a switch from proof-of-ork (PoW) to proof of stake (PoS) meaning Ethereum no longer requires miners’ services. While the switch should undoubtedly benefit the Ethereum network in the long run, the miners are now in a bind and may be ooking to book as much profit in the short term to bandage their uncertain future.
ETH USDT 1-Day Chart
Ethereum price currently auctions at $1,295 as bulls are trying to find a floor above the 200-week Simple Moving Average (SMA) The RSI has breached oversold conditions, which could entice counter trend traders to enter the market for a rise back into the 21-day SMA at $1,490. Still, the play may be too risky as the bulls still have not produced a daily settle above the 8-day Exponential Moving Average.
Investors should remember that the previous Merge-anticipated rally did not supersede the volume during the mid-Jun liquidations. There is a potential that Ethereum could fall flat and wipe out the June 18 swing lows at $881. Invalidation of the bearish knife scenario – with targets at $881 could be a break of the September 11 swing high at $1,789.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
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