ETH Backpedals After Hitting $1,800 Ahead Of Merge Last Week

As the integration has progressed, Ethereum’s price has slid precipitously. ETH’s price could fall further as the financial markets continue to experience extreme pessimism.

Merge came into effect on the morning of September 15. The price of ETH dropped 11.91 percent during the day, wiping off all of the gains it has made since September 14.

It is clear that the outlook for ETH following the integration looks grim because it implies that the crypto winter would continue into the summer.

In the time after this article was written, the coin’s price has found support near the 61.80 Fib level, at around $1,329.91. A portion of the Donchian channel’s lower section has also been explored by the bears. This is an indication of a more deep descending pressure.

ETH Rebound Still A Big Possibility

ETH’s recovery is feasible, but only in the far future, as the Merge raised more concerns than it answered, and the broader financial markets are still battling to reestablish confidence.

A positive outlook for Ethereum’s future is something this occasion is meant to instill in traders and investors. ETH’s proof-of-stake scheme is a negative turn according to investors and traders.

Reddit user r/CryptoCurrency posted that proof-of-stake benefits the wealthy while hurting the poor. Investors and dealers are under increased pressure to sell because of the combination of current market circumstances and skepticism surrounding the upgrade.

These indicators are revealed in the momentum and stochastic RSI indicator. The current convergence of Stoch RSI indicators is bearish. This indicates that investor sentiment remains at an all time low.

Ethereum Bulls are Feeling the Pain

Additionally, ETH’s momentum is a staggering -410.90. Anxiety is a common feeling among bulls in both the Merge and other financial markets.

The Bitcoin-Ethernet relationship is also very close. The correlation coefficient for Bitcoin and Ethereum is 0.69 at the time this article was written. This indicates that their price movements closely match each other.

With the crypto market on a downward trend, it is easy to assert that ETH’s investors and traders are in it for the long haul.

Gary Gensler is the chairman of Securities and Exchange Commission. He stated that staking may make Ethereum a security and could expose ETH to legal trouble.

Ethereum is not the only cryptocurrency using proof-of stake. ADA and SOL are based upon the proof of stake protocol.

Ethereum being classified as security could lead to other currencies falling in price.

The price of $1,329.91 is proving to be an acceptable level for a bearish attack in the short-term. Time will only tell if Ethereum can rebound from this drop.

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The analysis is a personal opinion of the author and should not be considered investment advice.

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