The Merge completed on Friday and Ethereum dropped to its lowest level in three weeks. The world’s second largest cryptocurrency dropped below $1,500 today, less than 24 hours after the historic migration from proof-of-work (PoW), to a proof-of-stake (PoS) system. Bitcoin was also close to hitting a multiweek low.
Bitcoin
Bitcoin (BTC) fell further below $20,000 on Friday, ahead of next week’s expected interest rate hike by the U.S. Federal Reserve.
BTC/USD dropped to an intraday low of $19,625.22 in today’s session, taking prices closer to a support of $19,300.
Following disappointing U.S. inflation numbers, the crypto market has been volatile the last week.
The decline comes less than a day after the world’s most valuable token traded at a peak of $20,370.00.
The chart shows that bitcoin’s recent decline coincides with a new floor in its 14-day relative strengths index (RSI).
Now, the index is at 43.48. The next move will be towards resistance at 46.00. If this happens, BTC could trade above $20,000.
Ethereum
Ethereum (ETH) was once again in the red in today’s session, as the token dropped to a two-week low.
Following a peak of $1,594.54 during yesterday’s session, ETH/USD fell to a bottom of $1,451.56 earlier today.
Ethereum moved in a way that did not clash with $1,430 as a critical support point. Bulls entered to propel prices higher.
As of writing, the world’s second largest cryptocurrency continues to trade close to today’s bottom, which was its lowest point since August 29.
Many believe that a reversal may occur once the current red wave has subsided. The first target of bulls is likely to be the capture of $1,500.
Next week’s Federal Open Market Committee (FOMC) meeting will likely be a key test for prices, with the potential for a 100-basis point hike on the table. As such many are uncertain how it will affect market confidence.
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Is ethereum likely to continue trading lower in the weekend? Please leave your comments.
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