Ethereum was trading above the market price of $2,000 at the start of the prior week but has since dipped below the $1,600 level. After the heavy losses, Ether’s expected selling halts during the session at $1,562. The No. 2 crypto is losing 1.30% daily. Investors, many of whom are retail traders, had placed a higher value on round numbers, but have profited from the rise after taking a profit at $2,031. The latest ETH drop has made the battle for the moving average (MA 50), which is currently close to $1,500, a key one. If the new week price ends below this level, another round of selling may occur. But if the price remains comfortably above the $1,600 handle, more gains may pave the way for a retest of the April 2022 high of $3,581. At the time of analysis, ETH/USD is trading at $1,614. After repeated delays, Ethereum’s upgrade, known as the “Merge,” is set to take place on September 15th. The blockchain will transition from a proof-of-work system to a proof-of-stake mechanism. The long-awaited ‘Merge’ of Ethereum will increase returns and attract new investors. The move, according to proponents, will make the Ethereum network speedier and more energy-efficient.
Key Levels
Resistance Levels: $2,300, $2,000, $1,700
Support Levels: $1,500, $1,300, $1,000
ETH/USD Daily ChartOn the daily chart, the ETH/USD is rising from the $1,562 level, which is supported by the daily moving average (MA 50), and if the no. 2 crypto rate falls, it is likely to find support lower at $1,300. In the long run, the ETH/USD might return bullish as it trades above the critical horizontal barrier of $1,000.
However, the ETH/USD confronts a stiff barrier above the $2,000 zone ahead of the current price. The rebound from the 2022 low of $879 (Jun. 18) is consistent with the pair’s longer-term uptrend. On the downside, the following support levels are at $1,300, $1,000, and $879.
ETH/USD 4-Hour ChartThe ETH/USD has recovered from the lower end of the four-hour chart to $2,031, but another dip occurred while range trading continues. It is currently trading at $1,612. The 4-hour relative strength index (RSI) is less than 40, indicating that the market is still at an oversold region and that further losses are possible.
The pair’s next level of resistance is at $1,700, which might limit its price movement, a break with further movement beyond the $2,000 level predicted. The $1,500 low provides some support, followed by the $1,300 level. On the downside, only a close below the $1,500 level will confirm a temporary high has been established, and a retreat toward the $1,300 level is possible.
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