Ethereum Price Anticipates Possible Downward Shift

The state of Ethereum after the merge has surprised many. The numbers and results were not what they had in mind.

Deteriorating macroeconomic conditions and other negative factors overshadowed the breakthrough hopes. In a way it was, but the pre-merge fanfare was very high until a few days after the event.

The optimism that built up in the days leading up to the release of the consumer price index, which eventually collapsed in broader financial markets, was wiped out in the fall of September 13th.

Ethereum (ETH) Federal Reserve Hike Feeling stressed?

At the time of this writing, Ether fell as it was reported that the US Federal Reserve could raise interest rates by another 75 basis points in November if economic conditions do not improve.

ETH may be starting to feel stressed by the Fed’s looming interest rate hike this early on. is it showing

Chart: TradingView.com

If the graph is any indication, things are not so optimistic.

The altcoin has been trading between $1,408.15 and $1,219.29 since September 19, with support at the 61.80% Fibonacci retracement level, currently at $1,265.02. The Bull Bear Power indicator is forming a downward pointing at the time of writing.

This could indicate that it will become more difficult for the price to break out of the $1,384.77 resistance level.

The indicator also revealed a crunch zone formation, making price action above $1,384.77 more difficult.

The 20- to 250-day simple moving averages are all acting as resistance levels, putting downward pressure on the altcoins.

The intraday chart shows a descending triangle formation. Given the foregoing, this could indicate to investors and traders that further corrections are likely to occur in the near future.

Due to current market pressure, a market correction could cause the price to fall by $1,220.35, or 10%.

Speculative Bull Run – How This Happens

If the support at $1,265.02 holds, the resistance at $1,384.77 is likely to be retested. This hypothetical rise is backed up by the Chaikin Money Flow Index, which shows that the market is still somewhat dominated by buyers.

Bullish investors can use the CMF as a springboard to strengthen the weak support line mentioned above. Even if the momentum indicator is bearish, it is slowly rising.

These variables could help the price eventually reach and break through the $1,384.77 resistance level and trigger a rebound. and trailers can participate in price rebounds by buying dips.

ETH total market cap at $162 billion | Featured image from Kryptografen, Chart: TradingView.com