Ethereum was once again trading below $1,900 during Thursday’s session, as the Ethereum Foundation clarified speculation surrounding The Merge. Although it was rumored recently that this move would reduce gas prices, these claims have been somewhat discredited. Bitcoin traded below $24,000 and was lower.
Bitcoin
Bitcoin (BTC), which fell for the fifth consecutive session, moved closer towards a $23,030 price floor and edged lower.
On Thursday bitcoin fell to $23,243.35 (the lowest intraday trading level since August 10).
This is because the 10-day moving average (red), has now shifted in its direction and appears to be facing downward.
BTC/USD was down nearly 5% as of last week. Price strength has also fallen to a three-week high.
The chart shows that the relative strength indicator (RSI) now tracks at 51.84. It follows a breakout at 53.66 support.
If bulls want to buy BTC back above $24,000 then price strength must rise and send the RSI higher than this floor.
Ethereum
Thursday’s move also saw ethereum, (ETH), fall as it continued its slide for the fifth consecutive day.
ETH/USD hit a bottom of $1,823.53 earlier in today’s session, as the Ethereum Foundation commented on recent rumors surrounding The Merge, and its potential impact on gas fees.
In a blog post, it was stated that, “Gas fees are a product of network demand relative to the network’s capacity. The Merge deprecates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not significantly change any parameters that directly influence network capacity or throughput.”
Traders who bought the rumor and helped send ETH to a 3-month peak earlier this week seem to slowly be retreating.
At the time of writing, relative strength in ethereum had also fallen, with the RSI falling below a 60.32 support point.
This index seems to be trying to reenter today at this point, currently trading at 59.70. As of this writing, ETH/USD trades marginally higher at $1854.84.
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Are you expecting further drops in ethereum next week? Please leave your comments.
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