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 go back to previous low
Ethereum has repeatedly failed to meet the buyers target of $2,000. 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 saw its worst level in two years. Although Ethereum recovered within a month, the August dump rendered this recovery almost 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 break below $1.5K?
According to CoinMarketCap, Ethereum is currently trading near $1,700 with a trading volume of $17.2 billion. If Ethereum breaks below its moving average (MA), selling pressure will certainly intensify. Ethereum was rejected at $1,789, and the bearish momentum is expected to continue towards $1,429. Ethereum declined marginally 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 a period of 14. The RSI is indicating a bullish zone for Ethereum, where ETH price is likely to move higher above $1,800. Ethereum sits in the overbought zone in the market. Buyers and investors have emerged ahead of the merger while the altcoin is facing a slight decline. Ethereum price is moving above the moving average line, indicating a continuing upward trend.
