The Ethereum cryptocurrency has received significant support, regardless of market price. The Ethereum Merge has seen the digital asset perform less than expected since its completion. ETH’s price has continuously bled out, which has led to its price relegating to the low $1,000s. There are many speculations about whether the cryptocurrency can recover as the month starts.
Three Red Weekly Closes
Along with the rest of the crypto market, Ethereum’s price has suffered bitterly at the hands of the bulls. The curse of September resurfaced, with digital assets in the space seeing more red than green over the same period. Ethereum’s performance has been greatly affected by three consecutive weekly closed red for the month.
These bears made a strong stand at $1,400 over the course of the past weeks. This is evidenced by ETH’s inability to beat this point, even with some rise in momentum.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
Interestingly, Ethereum’s chart looks eerily similar to the same trend that was recorded back in September of 2021. It was right in the middle the bull market, just before ETH hit the all-time high of $4,900. Three consecutive closes of red followed by a close that was green were recorded for the digital asset. The cryptocurrency would then experience two months of weekly green closings, which saw it surge by over 48%.
If this trend holds and Ethereum is able to successfully break through the $1,400 resistance point this week, then ETH’s price could rally to $1,800 over the next two months before eventually losing steam.
Ethereum: Can it Hold up?
The Merge and the weakness in ETH has had a negative impact on the digital asset as well as investor sentiment. Most investors prefer to continue holding their coins over the long-term. However, sell-offs keep growing.
All eyes now turn to the Ethereum staking agreement, which is sending more and more daily. The current contract holds more than 14.1million ETH, which accounts for approximately 12% of total supply. Since there’s no way to withdraw them, the ETH are temporarily taken off-limits, causing a drop in supply.
Despite current low prices, the majority ETH investors remain in profit. This is 53% of the investors that have held their coins more than a year. Profit-taking is continuing with inflows to exchanges exceeding $4.49 Billion over the past 7 days, compared with outflows at $4.44 Billion.
Featured Image from El Cronista. Chart from TradingView.com
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