Ethereum price continues to struggle below $1600 despite the successful merger. As noted earlier, the Ethereum consolidation appeared to be a “rumor buy, news sell” event, which appears to be happening, but the lack of highly volatile prices suggests that even the expected selloff didn’t appear to be taking place. Event. Instead, this momentum currently appears to be muted, making it impossible for the price to swing in any direction.
The merger is priced at
During the rallies leading up to the Ethereum consolidation, there were debates over whether the upgrade was finally priced in the value of the digital asset. At one point, ETH rode the wave up to $2000 but quickly lost its footing. Given this, it was all about what was best for a digital asset.
Now, that the merger is complete, it seems certain that the price has already been priced in. For market analyst Julius Baer, he says the best-case scenario would have ended up being that the merger did not happen. If true, the current resistance to any kind of significant movement on the part of the digital asset is a good thing.
Merge fails to move ETH price | Source: ETHUSD on TradingView.com
However, it is alarming that such a highly anticipated event appears to have absolutely no impact on the price movement of the digital asset. But the market slump that followed the release of CPI data earlier in the week likely exhausted the market.
Could Ethereum Rebound From Here?
Prior to the merger, Ethereum had a target price of $2000, given the bullish momentum recorded during that time. However, the drop in price has put the digital asset in a very difficult position.
With the price dropping to the $1,590 region, the cryptocurrency is unable to properly clear important technical levels like the 50-day moving average. In addition, the 100-day moving average looks worse. This indicates the possibility of further downward movement over the next week.
The selling has not declined over the past two weeks. Ethereum Register massive exchange flows leading to consolidation, Thus, the volume of the flow over 7 days amounted to 11.52 billion dollars. This large inflow volume, along with a dip below the 50-day moving average, skewed the 50-day MACD significantly towards selling pressure.
The next major support level for the digital asset is now at $1,500. However, a failure to properly maintain this level could lead to Ethereum testing the $1,300 area once again.
Featured image from CNBC, chart from TradingView.com
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