Ethereum Dropped More than 11% on Merger Day, Have the Bulls Departed from the Markets?

The second-largest crypto faced a huge correction soon after the Merger was successfully implemented. At the press time, the ETH price is trading below $1500, at around $1472. Ethereum tried very hard to surpass the crucial resistance place around 50-day MA levels at $1676 after the Merger but eventually resulted in a huge drop of over $100 in no time. 

However, the crypto asset continues to plunge down heavily as the bulls appear to have exhausted completely. Therefore, in such a case, will the price rise over the bearish influence before the end of 2022, or the ETH price will mark a bearish yearly close below $1200?

Ethereum has been bouncing well after each correction since June 2022, while multiple catalysts fuel the rebound. Woefully, the global macros have largely impacted the broader crypto market and hence the price remains unaltered after the much-awaited Merger. 

The recent rejection compelled the price to slice through the lower support and break the symmetrical triangle. The bearish trend may continue for some more time until the asset validates a firm rebound after hitting the lower support zone between $1425 and $1399. In the worst cases, if the [price fails to hold at these levels, then the price could revisit the levels around $1200 or below. 

On the brighter side, after Ethereum Merger, the upcoming triple halving could help the price to escape the bearish trap and propel highs.

The analyst here believes that during each cycle, the bull run begins from the regression band and also ends at these levels. However, the Ethereum (ETH) price is yet to enter the band and hence a notable drop may be expected that may induce a catapult action to ignite the next bull run in the future. 

Was this writing helpful?

Source link