Post Merge Ethereum Fell 8%; Are Good Days Over?

Ethereum price is jilting on its bid for a post-Merge rally amid considerations over an aggressive Fed hike next week. The explosive sell-off in Bitcoin on Tuesday had a play result on Ethereum too. However, from a broader perspective, the price is trading in a short-term trading range of $1,580 and $1,780 since July. With a little deviation in between.

The current market structure offers not much excitement. Further, the market already discounts the much-anticipated event–Ethereum Merge.

Ethereum has successfully upgraded to proof-of-stake (PoS) consensus post Merge. But the Ethereum price shows no enthusiasm after the initial up run as it scaled down into negative territory.

As of writing, ETH/USD is exchanging hands at $1,583, down 3.12% for the day.

• Ethereum’s price failed to capitalize on the successful Merge today.
• The sellers pushed the price below the 21-day EMA.
• The 24-hour trading volume shoots 28% to $25.09 billion.

Ethereum price back to the familiar trading range

Ethereum’s price after falling sharply from its swing high took a pause at around $1,600. The price is trading in a “Rising Channel” from the lows of $1,068. Since,the  fall on August 29, ETH formed a short-term bottom of $1,423. From there price moved by more than 20%. 

Currently, the price has taken good support from the raising channel support trendline, connecting all recent swing lows,  from an impulse move from $1,426(Start) to $1,788 (End). 

According to the “Volume Profile” indicator, there is a fight going on between the buyers and the sellers at current levels, as shown in the charts. If the price is able to sustain above $1,650, before falling even further, then Ethereum will again try to test the $2000 level mark.

 Although, a breakdown below this “Rising Channel” pattern, with good volumes, will bring more selling and will trap buyers, accumulating at these levels. 

The way charts are developing post the Merger, It seems  that big players are trapping buyers on fake breakouts and in short-term rallies, while slowly accumulating it near lower levels. As you know, by trapping buyers, sellers will enter aggressively, and that helps the price to go down, which is good for big players to enter a long trade at lower levels. 

The Conclusion is that traders wait for clear signs before placing any aggresive bids. The price is sliced below the movign average. 

The MACD reamins neutral with a negative bias. Any downtick could bring more downside.

A break below $1,500 would amplify the selling toward $1,420. A sustained selling pressure would prompt sellers to retest lows of July 26 at $1,356.