The post-merger scene of Ethereum surprised many; Numbers and score weren’t something they had in mind.
Poor macroeconomic conditions and other negative factors overshadowed what was expected as a breakout. That was, in some ways, but the uproar before Marge was very turbulent, until a few days after the event.
The optimism that had been building up in the days leading up to the CPI report, which eventually led to the collapse of broader financial markets, was dashed in the fall of September 13.
Ethereum (ETH) Feeling overwhelmed by early stress?
As of this writing, Ether has been low as it was reported that another 75 basis point rate hike by the US Federal Reserve in November is possible if economic conditions do not improve.
ETH, early on, may start to feel the pressure with a looming interest rate hike from the Federal Reserve. The chart indicates that ETH could suffer more losses, but what is it really showing?
If the graph is any indication, things don’t look very rosy.
Since September 19, the altcoins have been trading between $1,408.15 and $1,219.29, with support at the 61.80 percent Fib retracement level, now at $1,265.02. The Bull Bear strength indicator has formed a bearish signal at the time of writing.
This may indicate that a price rally above the resistance level of $1,384.77 will be more difficult. Since September 15th, the center of the Bollinger Band is offering dynamic resistance.
The index also revealed a crisis zone formation, making the price movement above $1,384.77 more difficult.
The 20- and 250-day simple moving averages act as resistance levels, adding to the downside pressure on the altcoin.
The intraday chart shows the formation of the descending triangle. In light of the above, this may signal to investors and traders the possibility of a further correction in the near future.
With the current market pressures, a market correction could push the price lower to $1,220.35, a decrease of 10%.
Upside speculation – how could this happen
If the support at $1,265.02 holds, the resistance at $1,384.77 could be retested. This hypothetical rally is supported by the Chaikin Money Flow Index, which indicates that the market is still somewhat bullish.
Bullish investors can use the CMF as a starting point and consolidation for the previously mentioned weak support line. Even if the momentum indicator is bearish, it is creating a slow rise.
These variables could eventually help the price to reach and breach the $1,384.77 resistance level, thus allowing for a rebound. If today’s trading session ends on a bad note, investors and trailers can participate in the price rebound by buying the dip.
ETH total market cap at $162 billion | Featured image from Kryptografen, Chart: TradingView.com