The Ethereum price has dropped for the second straight day as crypto markets continue to trade in a choppy manner at the weekend. The predominant sentiment is still one of worry about a downturn in cryptocurrency market activity brought on by tight Fed monetary policy via the greenback. Meanwhile, Ethereum continues to gain positive traction, although this represents a minimal gain, also within fractions of a percent, while the price remains around $1,500. ETH is now following an ascending trend line with resistance near $1,700. At the time of analysis, ETH/USD remains firmly anchored above the psychologically significant $1,500 level, which can open doors for more gains. Cyber Capital’s founder and chief investment officer, Justin Bons, has an upbeat prediction about the impact the Merge activation will have on Ethereum. Mr. Bons has taken to Twitter to share that the hotly anticipated Merge upgrade is finally arriving on Ethereum. He stated, “The question is often asked whether the merge is already priced in, I would argue that it is not entirely priced in, largely due to the misinformation campaigns carried out by its opponents.” The merge is not priced in as far as people believe such false narratives”
Key Levels
Resistance Levels: $2,300, $2,000, $1,700
Support Levels: $1,500, $1,300, $1,000
ETH/USD Daily ChartAfter its rebound on the daily chart, above the ascending trendline, ETH/USD has moved towards the $1,650 handles, extending its price movement to the daily moving average (MA 50). Although the weekend’s light trading limits the crypto pair’s swings, it continues to lag near the level of $1,600. At this time, there is currently no discernible change in the ETH/USD trend.
A break higher past the $1,700 zone connotes an overall recovery from level $879. The rebound leg would have continued after the retracement from the level at $2,031, though. At the $2,165 level, the medium-term bias will once more be corrected downward if not breached. On the upside, though, the high might get close to going beyond $2,500.
The ETH/USD pair increased from the $1,420 level on Aug. 29 to $1,650 on Sept. 2. However, a transient high has developed there, so this week’s initial bias is neutral. However, if the moving average (MA 200) at $1,700 is broken, a trend from $1,500 to $2,000 may be the next target.
In this case, a stronger pullback scenario may keep short-term sentiment favorable as long as the support level of $1,300 holds. The ETH/USD could be vulnerable to a further decline down to $1,500 and could be approaching the $1,300 congestion zone as a result of possible future sell-offs.
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