Despite the Merge’s success, Ethereum prices continue to plummet below $1600. As pointed out previously, the Ethereum Merge had looked to be a “buy the rumor, sell the news” event, which seems to be playing out, but the lack of highly fluctuating prices suggests that even the expected sell-offs seemed not to have happened. It appears that the momentum is weak at present, which makes it difficult for prices to swing in either direction.
The Merge is priced in
The debates over whether or not an upgrade to Ethereum had finally been priced into its market value arose during rallies leading up to the Ethereum merger. ETH reached $2,000 in one instance, but lost its ground quickly. This made it difficult to decide what was best for the digital asset.
It seems that it is more certain that the price was already set after the Merge was completed. Julius Baer, market analyst, believes the Merge could have ended up as a non-event. This would make the resistance on the part digital assets to significant movements a positive thing.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
It’s concerning, however, that this much anticipated event appeared to have absolutely no impact on the price of the digital asset. The market’s decline after the CPI data were released earlier this week likely contributed to market fatigue.
Could Ethereum rebound from here?
Prior to the Merge the Ethereum price target was $2,000 due to the uptrend that had occurred during this period. The digital asset is now in a difficult spot due to the recent price drop.
As the price drops to $1,590, cryptocurrency can’t clear key technical levels, such as the 50 day moving average. The 100-day moving mean looks even worse. It is possible for the market to move more bearishly in the week ahead.
Over the past few weeks, there has been no relief from sell-offs. Inflows into Ethereum were huge in the days leading to the Merge. This brought the seven-day total inflow volume up to $11.52billion. Due to this large inflow volume and the fall below the 50-day moving mean, the MACD has skewed heavily in favor of selling.
The $1,500 level of support is now the next significant support level for this digital asset. Ethereum will most likely test $1,300 if it fails to hold the level.
CNBC featured image, Chart from TradingView.com
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