The recent bearish trend on Ethereum (ETH) might validate the recent surge to $1,789 as a dead cat bounce due to a shift in the risk appetite of crypto investors towards macroeconomic indicators despite the merge. ETH is still trying to recover from last week’s 19% decline, which broke through the daily moving average (MA 50) and $1,500 barrier to reach a low of $1,404 on Friday, September 16. A recovery stall in ETH/USD, which had encountered headwinds below the $1,700 barrier and a daily chart that is bearishly aligned, is foreshadowed by the pair’s repeated closes below the $1,500 mark as well as by Tuesday and Thursday’s lengthy bearish daily candles. The ETH/USD rate is currently trading at $1,419, showing no signs of bottoming out despite fresh pressure on risky assets. On September 15, the ETH network completed the global update known as “The Ethereum Merge,” which most investors and developers anticipate would change the industry and enable Ethereum to surpass Bitcoin in terms of capitalization and value. Investors, however, appear to be ignoring the overall state of the market and the hype after the Merge. A considerable amount of investment capital may not be attracted by this event given the current backdrop of declining market risk appetite.
Key Levels
Resistance Levels: $2,000, $1,700, $1,500
Support Levels: $1,300, $1,000, $800
ETH/USD Daily ChartThe ETH/USD pair has recovered linearly from its prior days’ decline to the $1,404 level. On Sunday, Ethereum (ETH) opened at $1,468 but remains vulnerable below the psychological milestone of $1,500. On the daily chart, it can be observed that ETH/USD is getting ready to exit the straight-line zone. Within the barriers, ETH/USD has traded in a constrained range with a session low of $1,417 and a daily high of $1,470.
The psychological barrier of $1,500 would be exposed, leading to the next barrier at the daily moving average (MA 50) on a convincing break higher. Its gain, however, may be restrained by the MA 50’s current southward trend, which denotes bearish pressure. A sustained advance above $1,500, therefore, seems doubtful. Nevertheless, the path of least resistance appears to be on the higher side given the established support levels beneath the $1,400 level.
ETH/USD 4-Hour ChartThe ETH/USD pair has entered a downward price channel in the four-hour time frame and appears to be heading back toward the $1,500 level. If the technical barrier is not cleared, selling pressure will likely pick up, leading to a loss that is similar to Friday’s low of $1,404. If nothing changed, $ETH might stay steady throughout the upcoming trading session.
Negative traders’ likely target would be close to recognized support at the level of $1,400. The $1,300 mark serves as important support, and the ETH/USD pair turns bearish when it trades below $1,500. The $1,500 and $1,700 levels serve as important points of resistance, and the ETH/USD pair is only positive when trading above the $1,700 mark.
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