Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Ethereum Forum => Topic started by: Coin_Gabbar on September 17, 2022, 07:14:40 AM
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The Ethereum merger is one of the most important events in the history of the blockchain and the industry.
The event will transition the blockchain from Proof-of-Work (POW) to Proof-of-Stake (POS) (POS). While everyone waits for Merge's positive effects.
The impact of the transformation is already being seen in the cryptocurrency market. Ethereum prices have dropped significantly in the previous 48 hours on the market. Furthermore, market analysts predict that the price of Ethereum will fall further following the merger.
While everyone anticipates positive outcomes, a hard fork is still possible. If this happens, it will have a negative impact on cryptocurrency values.
Because of the merger anticipation, Ether has already outperformed BTC in recent weeks. However, other analysts are concerned that the merger euphoria would result in a 'buy the rumour and sell the news scenario.'
Of course, all of this will be overshadowed by the important Federal Reserve meeting on September 20th and 21st, when the Fed is likely to announce another significant rate rise in response to this week's poor inflation report.
In the financial markets, the buy the rumour and sell the news occurrence occurs. It happens when strong anticipation for Merge events or economic news push asset values to rise. After the event, the increased prices will reduce again.
Ethereum fell sharply against the US dollar after breaking through the $1,655 resistance level. ETH is suffering and faces more losses below the $1,420 barrier.
Ethereum failed to gain enough momentum to break over the $1,650 and $1,660 resistance levels. ETH made a top at $1,647 and then began a new drop.
The price fell steadily below $1,600 and the 100 hourly simple moving average. Even the $1,550 and $1,520 support levels were breached. The price fell by roughly 10% and traded as low as $1,447.
The price of ether is now consolidating losses above $1,450 and below the 100 hourly simple moving average. On the upside, the price is encountering resistance at $1,500. It is around the 23.6% Fib retracement level of the recent fall from the swing high of $1,647 to the low of $1,447.
According to Price Analysis, The market capitalization of this ETH is estimated to be $179,213,581,165. The 24-hour trading volume for the coin is around $20,058,387,782. ETH market capitalization has fallen by 9.02%. However, trade volume decreased by 18.45% during intraday trading. The market capitalization to volume ratio is 0.1119.
The next major resistance level is between $1,550 and $1,560. It is close to the 50% Fib retracement level of the recent decline from the swing high of $1,647 to the low of $1,447. A clear break over $1,560 might push the price towards $1,600. On the hourly chart of ETH/USD, a major bearish trend line is forming with resistance near $1,620. Any more gains might open the door for a move towards the $1,660 barrier in the near term.
If ethereum fails to break through the $1,500 mark, it may continue to fall. On the downside, initial support is near $1,450. The next major support level is at $1,420. A breach below the $1,420 support level might result in another sharp drop. In this scenario, the price of ether may fall to $1,350.
KEY LEVELS :
RESISTANCE LEVEL : $1500-$1560
SUPPORT LEVEL : $1420-$1360
For more information visit Coingabbar.com
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And what did you want to expect from the market, he is now going through with you, seeing that you are following the market, he decides to continue his downward march. But this is normal, there is no need to worry in two years there will be a bullish market rise, analysts predicted.
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Traders appear to be utilising call options to bet on the ETH price into September, whilst futures and options backwardation indicate an expectation to sell-the-news is in play," Glassnode researchers wrote in a report at the time.
The merge is Ethereum developers’ name for the long-awaited shift away from the original proof-of-work consensus model, in which thousands upon thousands of users run powerful computers to secure the network and potentially earn cryptocurrency rewards.
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It has often been seen that when the market goes up then it also falls down after a limit, this sequence continues in the market, at this time the market is going through a bears turn, after that a bull run will also come. ethereum is also falling, at this time it has come to $1421, it may fall even further down.