The post-Merge landscape of Ethereum took many by surprise; the figures and the outcome weren’t something they had in mind.
It was not what many expected, but bad macroeconomic conditions and other adverse factors overshadowed the breakthrough. While it was true in many ways, there was a lot of hype around the Marge, which was only realised a few days after the event.
In September 2013, the optimism built up over the CPI report was destroyed. This ultimately led to the collapse of the wider financial markets.
Ethereum (ETH) Feeling this Fed Hike Stress So Early?
As of this writing, Ether was down as it was reported that a further 75 basis point hike in interest rate by the U.S. Federal Reserve is possible in November if economic conditions don’t improve.
ETH, this early, could be starting to get stressed with the Fed’s looming rate bump. Although the chart indicates that ETH could be facing more losses than expected, what is it really saying?
Chart: TradingView.com
If the graph is any indication, things aren’t looking so rosy.
Altcoin trades between $1.408.15 and 1:219.29. Support is located at the $1,265.02 Fibonacci Retracement Level, which now stands at 61.80%. At the time of writing, bull bear power indicators has shown a tendency to point downward.
This could suggest that prices may struggle to surpass the $1,384.77 resistance. The Bollinger Band center provides dynamic resistance from September 15th to date.
It also showed the formation of a crunch zone that makes it more difficult for prices to move above $1,384.77.
These simple moving averages, which are between 20 and 250 days old, act as resistance levels. This adds to the downtrend in altcoin.
Intraday charts show a formation of descending triangles. This may be a sign that investors and traders may see a correction in the future.
Market pressures are causing the current price drop to $1220.35, or 10%.
Speculative Bullish Run – How This May Transpire
The support level at $1.265.02 could hold, and the resistance at $1.384.77 may be tested again. This potential rise in the Chaikin moneyflow index supports it. It indicates that the market remains dominated somewhat by buyers.
CMF can be used by bullish investors as a way to jumpstart their portfolios and provide a boost to the weak support line. Even though the momentum indicator may be bearish, it’s still showing a steady rise.
These variables could help price to reach the $1.384.77 resistance level, and possibly break it. This will enable a rebound. If today’s trading session ends on a poor note, investors and trailers can participate in the price rebound by buying the dip.
ETH Total Market Cap at $162 Billion | Featured image from Kryptografen, Chart: TradingView.com