Despite the success of the merger, the price of Ethereum will continue to struggle below $1,600. As mentioned earlier, the Ethereum merger seems to be a “buy the rumor, sell the news” phenomenon, but the lack of a very volatile price seems to be even the expected selling price. It happened. Instead, this momentum seems to be muted at the moment, making it impossible for the price to swing either way.
Integration is paid for.
During the rallies leading up to the Ethereum merger, there were debates about whether the upgrade would ultimately translate into the value of the digital asset. At one point, ETH rode the wave as high as $2,000 but quickly lost its footing. From here, it was a matter of what would be best for the digital asset.
Now, after the merger is complete, it seems more stable that the price has already been awarded. For market analyst Julius Baer, the best-case scenario was for the merger to be completed as a non-event. . If this is true, the current resistance to any significant activity on the digital asset is a good thing.
Merge fails to move ETH price | Source: ETHUSD on TradingView.com
However, it is worrying that the highly anticipated event seems to have no bearing on the price movement of the digital asset. However, after the release of the CPI data at the beginning of the week, the decline in the market caused weakness in the market.
Can Ethereum bounce back from here?
Prior to the merger, Ethereum’s price target was $2,000, at a record high at the time. However, the decline in prices has put digital assets in a particularly difficult spot.
With the price falling to the $1,590 territory, the currency failed to properly clear the 50-day moving average as important technical levels. Additionally, the 100-day moving average looks worse. This indicates the possibility of more bearish movement next week.
In the last two weeks, the sale offers have not eased either. Ethereum recorded the highest turnover leading up to the merger, bringing the 7-day volume to $11.52 billion. This large amount of gains, combined with the decline below the 50-day moving average, caused the 50-day MACD to turn sharply into selling pressure.
The next major support level for the digital asset is now at $1,500. However, failure to hold this level well could see Ethereum retest the $1,300 territory.
Featured image from CNBC, chart from TradingView.com
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