In the past week, high inflation rates in the United States frightened investors and made more interest rate hikes likely; the Ethereum price recorded more losses after the Merge, finishing down 8% and currently trading at just under $1,300. ETH sentiment has since shifted bearish after the price fell below $1,300. The daily relative strength index (RSI) slope, which moves lower from the midline 50, adds to the bearish pressure. Although the ETH/USD has a bearish bias, selling pressures should be considered temporary as long as the price remains above $1,200. On September 15, the ETH network underwent a Merge, which included the altcoin’s transition from the Proof-of-Work protocol to the Proof-of-Stake protocol (PoS). Since then, Ethereum’s price has dropped by about 20%. And, according to Vijay Ayyar, vice president of the Luno cryptocurrency exchange, the Merge has already been “factored into the price” of ETH, and “the actual event has become a “news selling” situation.
Key Levels
Resistance Levels: $2,000, $1,700, $1,500
Support Levels: $1,200, $1,000, $879
ETH/USD Daily ChartThe ETH/USD pair is attempting to sustain its break below the horizontal support at $1,300, after which it might run into ascending trendline support near $1,200. If broken, it could lead to a bearish decline to the $1,000 mark. A retest of the $1,200 level, on the other hand, could result from a bounce from this zone. A bullish breakout sustained above the $1,300 resistance level could signal a sharp return to the upside.
From the mid zones around the $1,500 level, the ETH/USD has receded to approach the $1,220 low level during the prior mid-week trading. Ethereum (ETH) started the week on a stronger note as the Fed’s bullish remarks lent some support to the USD. A cluster of resistance at $1,400 could be seen if a sustained rally occurs. This will be the preferred scenario as long as the $1,300 level, which has now turned into support, holds.
ETH/USD 4-Hour ChartThe ETH/USD is struggling to change its intraday bias from bearish to bullish, but with minor support at $1,250 intact, a further rise is likely. The recovery from the $1,290 intraday low towards the 4-hour moving average (MA 50) and the $1,400 minor resistance may continue to the $1,500 level.
ETH/USD’s corrective downside could extend to new lows beneath the $1,200 region until reaching the $1,000 level’s contention field. The pair’s intraday bias remains bearish as the earlier rebound from the $1,220 level continues even though weak.
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