ETH, after the merger, took traders and investors on an exciting adventure. The value of Ethereum has fallen by a staggering 26.36 percent since the much-touted merger.
The coin’s June-August rally was completely wiped out by this drop and the market catastrophe on September 13th.
Fears of further declines in the token are evident as the price struggles to breach the 61.80 Fibonacci level, currently at $1,329, following the US Federal Reserve’s rate hike announcement. This may indicate that prices will continue to fall.
Play ETH downward path
There was a sharp drop in the price of ETH from the 13th to the 19th of September, somewhat different from the declines in May and June but much lower in terms of volume.
The result is the same, though; A significant drop in investor confidence in both the token and the ecosystem as a whole.
ETH TVL hasn’t improved much after switching to Proof of Stake. It fell from $34.63 billion to $30.38 billion between September 13 and 19, the same time period as last year, a massive 12.27% drop.
As of this writing, the coin price is swinging up and down 1300 dollars region. This can be understood as a constant struggle between bulls and bears.
Additionally, ETH faced a rejection fuse earlier today, September 26th. However, this downtrend may be short-lived.
Possible price momentum
ETH has shown indications of potential positive momentum both micro and macro as of today. This could be a glimmer of optimism for ETH traders and investors.
The Stoch RSI has risen from the oversold territory. This indicates that the bulls are gaining momentum, which could push ETH beyond the $1,300 price resistance.
ETH has already accomplished this on both micro and macro scales as of this writing.
On the hourly chart, Ethereum bulls are currently trying to consolidate their position above the indicated resistance in order to turn it into support. Momentum indicator is trending upwards.
However, it is likely that this is only a very small cost. Given the 4.04% price drop between the end of September 25 and the beginning of September 26, traders may buy on the dip.
This drop in price may give day traders an investment opportunity.
ETH total market cap at $162 billion on the daily chart | Source: TradingView.com Featured image from CryptoMode, Chart: TradingView.com