- The implementation of Ethereum Merge was completed this week.
- The price of Ethereum recently broke through the August low at $1,419.
- The refutation of the bearish thesis is the closing of the candle above $1,596.
The price of Ethereum could go down to capitulate as traders continue their trades from last month. Key levels are defined.
Ethereum price looks risky
The price of Ethereum is showing mixed signals despite the bullish market sentiment associated with the successful implementation of Merge. On Friday, September 16, the bears broke through the August 29 low at $1,419, wiping out all the gains made that month. The 12-hour chart shows a sustained spike in bearish volume, suggesting that a new dip could be in order to get rid of the bulls that are still holding their positions.
The price of Ethereum is currently being auctioned at $1,442. Currently, the 8-day exponential and 21-day simple moving averages are contracting around the $1,600 price level. Classical price action theory suggests that this signal is likely to turn into a deadly bearish moving average crossover in the next few days. If market conditions hold, Ethereum price could continue south with a likely 200-week MA landing zone at $1,270.
12-hour ETH USDT chart
The technical details may come as a surprise as the Ethereum merger is expected to generate positive returns for the decentralized smart contract token in the cryptocurrency space. A bullish scenario is possible. However, bulls need to break through the moving average squeezes again at $1,596 to maintain the momentum needed to pull back to $2,000.
In the next video, our analysts delve deeper into Ethereum’s price action by analyzing key levels of market interest. -Team Netcost-Safety