Ethereum Price Is Declining Following The Merge, Vital Trading Levels To Follow

The price of Ethereum did not show any positive impact despite the successful completion of the merger.

Over the past 24 hours, the value of the coin has fallen by 2%, and in the past week, Ethereum has seen a decline of 17%. At the moment, ETH is trading sideways with very little price change.

The additional price drop could mean that the bears could take over Ethereum. Technical indicators have turned bearish at the time of writing.

Sellers are dominant at the time of writing, indicating increased chances of bears taking the reins.

The current support line for Ethereum was at $1,350, and if buyers return to the market, Ethereum could move slightly higher.

Ethereum may encounter strong resistance at the $1,500 price level.

The Bitcoin chart also did not look very positive in the past few days as BTC re-examined the $19,800 price area. An increase in purchasing power could lead to a short-term breakout near the $1,500 Ethereum price area.

Ethereum Price Analysis: 1 Day Chart

Ethereum price
Ethereum is priced at $1,431 on the 1-day chart | source: ETHUSD on TradingView

ETH is trading at $1,431 at the time of writing. The coin was moving near the immediate support line at $1,350.

The immediate resistance mark for Ethereum was at $1,500, which earlier served as a support area for the coin.

It is now consolidating near the $1,400 price area. With buyers returning to the market, Ethereum may be able to surpass the $1,500 price level.

However, it is not yet clear how long the coin will be able to trade above the upper resistance level. The amount of Ethereum traded decreased in the last session, which indicates that sellers have taken responsibility for the price action.

Technical Analysis

Ethereum price
Ethereum shows a decrease in buying power on the intraday chart | source: ETHUSD on TradingView

ETH registered a decrease in the number of buyers as it appears that they lost confidence in the asset as Ethereum barely registered a positive move after the consolidation was completed.

The RSI was less than half of the line, as an indicator of buyers leaving the market.

Ethereum moved below the 20-SMA line, which was also another indication that sellers are driving the price momentum in the market.

Buying strength could help ETH rise above the 20-SMA, which will bring back some positive price action.

Ethereum price
Ethereum depicts a sell signal on the intraday chart | source: ETHUSD on TradingView

Other Ethereum indices have also depicted bearish price action, with heavy selling across most indices.

The fantastic oscillator measures the price momentum and general direction of an asset. AO has depicted the red histograms below the half of the line, which indicates a sell signal for the currency.

Bollinger Bands depict price fluctuations and volatility.

The bands are narrowing, indicative of the range-bound price action of Ethereum.

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