In a bid to extend the post-“merge” downside bias, Ethereum seeks further decline today. So far in the past week, ETH has mostly been in the red, gradually retreating after nearly touching the $1,384 level. Despite the soft negative mood, the near-term bias has not shifted fully to the bearish side, as the second most popular cryptocurrency continues to trade within a range. As long as the daily moving average of 50 and the $1,500 minor resistance hold, a deeper drop is expected in the new week. At the time of this analysis, the ETH/USD price is trading at $1,317 after reaching an intraday high of $1,329. Ethereum (ETH) whale investors have long wielded significant market control over the token’s price movement. A number of factors dampened Ethereum’s bullish expectations after the Merge, but the focus remains on its latest transition to its proof-of-stake consensus, to scale up the network’s abilities in terms of performance and scalability. The post-Ethereum merge activities expected to attract institutions to its adoption is yet to play out. The deflationary aspect of Ethereum can boost its price performance to a whole new level. However, the crypto winter has engulfed the entire cryptocurrency market, which is currently experiencing a significant price drop.
Key Levels
Resistance Levels: $2,000, $1,700, $1,500
Support Levels: $1,200, $1,000, $1,000
ETH/USD Daily ChartSince the beginning of October, ETH has struggled to recover within a range and it has been unable to close decisively above the $1,400 level. ETH price is currently looking for an opportunity to break the surface of the triangle formation, which could consequently bolster buying forces above the $1,400 mark and toward the $1,500 level.
The ETH/USD pair is expected to step on the daily moving average (MA 50) at $1,500 during the ongoing rebound from the Sep. 21 low of $1,220. The relative strength index (RSI) upward bounce, which is below its 50 neutral mark, is an encouraging sign that positive momentum may continue. Nonetheless, the indicator remains in a range below its August high. As a result, new higher highs may be required to confirm a bullish bias.
ETH/USD 4-Hour ChartETH is still consolidating within a triangular pattern, which is capped by the $1,400 level. The price of ETH has risen from $1,220 to the surface of the triangle seen around $1,384, where a successful breakout is expected to accelerate toward the top of $1,400. If buying pressure increases further, the $1,350-$1,400 range may try to halt the rally ahead of the $1,500 mark.
Alternatively, if the price remains below the 4-hour moving average (MA 50) at $1,335 and $1,500, the $1,300 round level and $1,200 mark could come to the rescue immediately. In summary, ETH/USD is maintaining a neutral tone within a triangle in the short term, likely waiting for a close above $1,400 or below $1,300 to get back into the red.
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