Cryptocurrencies continued to lose money into the weekend after Fed Chair Jerome Powell’s Jackson Hole speech on Friday about fighting inflation to the last. After attempts to break through its upper border failed, Ethereum rushed down again. It fell to its lowest level in 5 weeks. Since its crash, ETH/USD has maintained its position with a selling bias while moving south. ETH price is currently moving below the daily moving averages (MAs 50 and 200) and it is now below the psychological level of $1,500, which is the pair’s lower boundary. At the time of this writing, the second largest cryptocurrency by market shed as much as 2% on the day to a $1,446 low on Saturday, despite losing nearly 5% weekly. Ethereum traders are expecting a rebound to usher the ETH/USD pair into a bullish region around $2,000 as the merge approaches. At the moment, the merge is expected to be a major catalyst for ETH’s bull run. Meanwhile, per Santiment, Ethereum whales have decided to move their holdings to on-exchange addresses due to the unexpected impact of the global market on the crypto market as it moves in lockstep with equities. A study revealed that the value of Ethereum assets held in non-exchange addresses had decreased by 11% over the previous three months. Meanwhile, the holdings of whale on-exchange addresses were up a staggering 78%.
Key Levels
Resistance Levels: $2,300, $2,000, $1,700
Support Levels: $1,300, $1,000, $800
ETH/USD Daily ChartETH/USD dropped to levels not seen since July, and the crypto pair is trading in a sluggish bearish trend beneath its daily moving averages (MA 50 and MA 200). The downtrend from the level of $1,706 may continue if the low level of $1,400 is broken. The low of $1,000 might be retested with a sustained decline. As long as the resistance level of $1,700 holds, this will continue to be a likely situation.
Advances in the ETH/USD are likely to be limited if the price is unable to return above minor resistance at $1,500, which creates a bearish potential towards $1,000 with restrictions near the $1,300 level. If the $1,300 level is broken, attempts will be made at the $879 lower level of support, which is the yearly low, for some gains on short for its bearish target.
ETH/USD 4-Hour ChartThe ETH/USD’s intraday bias is still downward toward the $1,300 support level. A breakdown is anticipated to occur at a low of $1,400. The price movement toward the level of resistance above the $1,500 level may initially change the bearish intraday bias to the upside.
In addition, on the 4-hour chart, the corrective trend that began at the low level of $1,005 is still in effect and could continue. On the other hand, below the support level of $1,400, recovery may be constrained to continue the fall, while marginal resistance above the level may primarily alter the trend of the intraday bias.
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