The Ethereum Merge is officially scheduled this week, and it is up to us to lead the event further. Ethereum continues to see a price action as the Merge is getting closer. Ethereum seems to discontinue its upward rally as the buying pressure declines as investors are facing fear ahead of the Merge, resulting in a sharp price fall.
Likely To Fall Back To Previous Lows
Ethereum has failed many times to fulfill buyers’ $2,000 target. This week Ethereum started a fresh upward rally from $1,423 and was able to make it to $1,789. In June, when Ethereum fell below the $1,000 level, the market observed the worst levels in two years. However, Ethereum recovered in a month, but the dump in August almost made this recovery go in vain.
The net unrealized profit/loss (NUPL) ratio has been moving near the hope-fear zone, testing the threshold of its fall at the start of this month. Ethereum is likely to drop to its previous lows. The altcoin king is now encountering bearish woes as it faces a minor retracement below the $1,800 level.
Break $2K or Plunge Below $1.5K?
According to CoinMarketCap, Ethereum is currently trading near $1,700 with a trading volume of $17.2 billion. If Ethereum falls below its moving average (MA), then the selling pressure will surely intensify. Ethereum had a rejection at $1,789, and it is expected that the bearish momentum will continue till $1,429. Ethereum had a minor decline below the $1,789 and $1,760 levels.
The price fell below the 23.6% Fib retracement level of the upward move. Ethereum has strong resistance at $1,800; if it breaks, Ethereum’s price can skyrocket to $2K. Conversely, Ethereum has a crucial support level of $1,680. If the support level fails, the price can plunge below $1.5K.
Ethereum is currently sitting at the 57 level of the Relative Strength Index (RSI) for period 14. The RSI indicates a bullish zone for Ethereum, and ETH’s price can rise above $1,800. Ethereum sits in the overbought zone in the market. Buyers and investors have emerged before the Merge while the altcoin is facing a slight fall. The price of Ethereum is roaming above the moving average lines, suggesting a continuous upward trend.
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