What’s Next for Ethereum? Plummeting Down to US$1,000 Seems to Be the Case
The Ethereum price drops after the launch of the Merge upgrade and its recovery seems difficult
Ethereum fell sharply against the US dollar after breaking through the US$1,500 resistance level. ETH is down more than 10%, and further losses could occur as it approaches the US$1,200 support level. Ethereum began a new decline after failing to break through the US$1,500 resistance zone. The price has dropped below US$1,400 and the 100 hourly simple moving average. On the hourly chart of ETH/USD, a key bearish trend line is forming with resistance near US$1,360. (data feed via Kraken). In the short term, the pair could fall even further below the US$1,300 support level.
Ethereum Price Drops Again
Ethereum has failed to gain enough strength to break through the US$1,480 and US$1,500 resistance levels. ETH formed a top near US$1,475 and then began a new decline. The price fell steadily below US$1,400 and the 100 hourly simple moving average. Even the US$1,350 and US$1,320 support levels were breached. The price fell by around 10% and traded as low as US$1,288. The price of ether is currently consolidating losses above US$1,280 and below the 100 hourly simple moving average. On the upside, the price is coming up against resistance near the US$1,335 mark. It is near the 23.6% Fib retracement level of the recent decline from the swing high of US$1,474 to the low of US$1,288.
The next major resistance is located between US$1,360 and US$1,380. On the hourly chart of ETH/USD, a key bearish trend line is forming with resistance near US$1,360. It is close to the 50% Fib retracement level of the recent decline from the swing high of US$1,474 to the low of US$1,288. A clear break above US$1,380 could send the price towards US$1,440. Any further gains could pave the way for a move towards the US$1,480 resistance in the near term.
More ETH losses?
If Ethereum fails to break through the US$1,380 resistance level, it may continue to fall. On the downside, initial support is near US$1,300. The next major support level is around US$1,260. A break below the US$1,260 support level could result in another sharp drop. In the aforementioned scenario, the price of ether could fall to around $1,200.
This week also saw internal Ethereum community dynamics at work. As it became clear that the merger would be successful last week, many Ethereum supporters bought into the token, believing that the transition boded well for its long-term success. The term “ultrasound money” is frequently used by Ethereum developers and supporters to describe the belief that the token’s value will be able to withstand global war, economic collapse, or other major disasters. This activity increased the price of Ether, prompting day traders who bought the coin purely for economic reasons to cash out on the value increase. Their activity caused the price to fall again. It was a prime example of crypto’s long-standing tensions. There are many different types of cryptocurrency investors, and those who believe in the technology for its long-term, transformative potential sometimes clash with those who are simply looking to make a quick buck.