Ethereum Faces Test Of Survival After Merge, Can $1,400 Support Hold?

After showing so much strength as the price rallied from $1,024 to a region of $2,000 against tether (USDT) ahead of the anticipated merge, many call for a bull run and a $4,000 Ethereum price at the end of the “Ethereum Merge.” The price of Ethereum has not shown that run it showed in recent months as the price has struggled to break above $1,800. (Data from binance)

Ethereum (ETH) Token Analysis On The Weekly Chart 

ETH experienced a decrease in price, from $4500 to about $1,024, despite its strong fundamentals. After touching a weekly low at $1,024, the price rose to $2,000 showing great strength before the scheduled merger. However, the price quickly fell as the resistance area for ETH’s price.

On the weekly chart, the price ETH formed an uptrend as it continued to follow this support line bouncing off in its bullish run. But, after a while the price of ETH broke that trendline, creating mixed feelings among many holders.

ETH’s price is trading above the key support of $1,400; the price of ETH needs to hold above this support to avoid the price going lower to its weekly low. The price of ETH could be trading in the $1,630 region if it holds the support. Breaking below $1.400 means that we will need to test the weekly key support in lower regions, such as $1,200, and $1,000.

For ETH’s price to restore its bullish move price need to break and hold above $1,700 with good volume. If the price of ETH rises to $1,900 or possibly even $2,000., it will need to break above $1700 and then close at $1,700. 

Weekly resistance for the price of ETH – $1,630-$1,700.

Weekly support for the price of ETH – $1,400-$1,200.

The Daily Price Analysis of ETH (1D) Chart

Chart of Daily Ethereum Prices | Source: ETHUSDT On

As ETH prices fall daily, they break the upside of an asymmetric triangular signaling a downtrend. This support zone is the ideal place for bulls as it allows them to increase their buy orders. 

The price of ETH would drop to below $1,400 if the market closes. That price is a reasonable range for buy orders.

The price of Ethereum must remain above $1,400. A break below that zone could turn the price into a resistance and make it difficult to move to higher levels.

The price of ETH currently trades at $1,450, which is below the Exponential Moving Average (EMA) 50 and 200, respectively. This resistance acts as a support for ETH’s price. For ETH, the resistance levels at the 50 and 200 EMA are $1620 and $2,000 respectively. To trend towards $2,000, the price of ETH must reclaim $50 EMA. For ETH’s price to be more likely to reclaim $1,400 support, it needs to maintain 50 EMA. 

Relative Strength Index for ETH (RSI), which is higher than 40 on the daily charts, indicates more sales volume. 

Daily resistance for the ETH price – $1,620, $2,000.

Daily support for the ETH price – $1,400.

Featured Image from zipmex, Tradingview Charts and Messari

Get more Crypto News at CFX Magazine