Ethereum was one of the cryptocurrencies that received huge support from the crypto community regardless of how the price performed in the market. Since the Ethereum merger was completed, though, the digital asset hasn’t performed as expected. The price of ETH has been constantly dropping, bringing its price down to $1,000. With the start of the new month, speculation abounds as to whether the cryptocurrency has what it takes to recover.
Three times weekly red closing
Along with the rest of the cryptocurrency market, the price of Ethereum has suffered bitterly at the hands of the bulls. Once again, the curse of September has reared its ugly head, and digital assets across space have seen more than green during this time period. Ethereum itself closed the month with three consecutive red weekly closes, which significantly affected its performance in the market.
Over the past few weeks, the resistance of the digital asset has been building, with the bears taking a strong position above the $1,400 level. This is evidenced by the inability of ETH to overcome this point, even with some pickup in momentum.
ETH sees three consecutive red weekly closes | Source: ETHUSD on TradingView.com
Interestingly, the Ethereum chart looks eerily similar to the same trend that was recorded in September of 2021. This was in the middle of a bull market before ETH reached an all-time high above $4,900. The digital asset recorded three consecutive red closes, followed by a green close. What followed would be two months of green weekly closing that saw the cryptocurrency surge over 48%.
If this trend continues and Ethereum manages to successfully breach the $1,400 resistance this week, the price of ETH could rise to $1,800 over the next two months before eventually losing ground.
Can Ethereum Hold Up?
ETH’s weakness after the merger has taken a toll not only on digital assets but on investor sentiment. The majority of investors still choose to hold their coins for the long term. However, selling continues to rise strongly at this time.
Basically, all eyes are on Ethereum a necklace, where more and more supplies are being sent every day. The contract is currently located at over 14.1 million ETH already in circulation, which represents about 12% of the total supply. Since there is currently no way to withdraw ETH, it is temporarily taken out of circulation, causing a significant drop in supply.
However, the majority of ETH investors are still winning despite the current low prices. That’s 53% of investors who have mostly held their coins for more than a year are still in the green. However, profit taking continues with exchange flows It amounted to $4.49 billion in the past seven days compared to outflows of $4.44 billion.
Featured image from El Cronista, chart from TradingView.com
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