Can the bull survive? Ethereum is one of the altcoins that has held up well in this weak market. Ethereum struggles with Bitcoin and works to outperform the leading cryptocurrency. Despite the fact that September is typically a letdown, will Ethereum improve those statistics with The Merge? Let’s examine the graphs for this. The on-chain analysis shows promising results.
A WEEKLY CLOCK FOR ETH SHOWN AT $1,900
A few weeks before The Merge, Ethereum’s price increased, but it is now locked around $1,900.
We discussed the need to prevent FOMO on resistance levels in this article. The institutional bias level (EMA 9/EMA 18) and the resistance level at $1,900 where the price was rejected. The institutional bias was likely to reject the price because it is bearish on a weekly basis.
It is merely a fake bounce in a downtrend as long as the price does not cross over the weekly resistance. To re-enter the zone between $1,900 and $4,000, buyers must overcome resistance at $1,900. It doesn’t appear unlikely to return to the neckline level of the double bottom at $1,280 on a weekly basis. This action would damage cryptocurrencies generally and result in a decline of more than 20%.
The momentum is still shaky, and at the level of the negative trendline, the RSI was ultimately rejected. Again, in order for buyers to take advantage of the momentum, the trendline must be crossed.
The negative trendline at the price level must be broken for the price of Ethereum to move past the barrier at $1,900. Buyers can still find work.
BUMP UP TO $1,600 FOR ETH?
Although it dropped by approximately 25%, the price could rise to $1,600.
Daily trends since the breakout of $1,280 are optimistic. Additionally, the bullish trendline is still being crossed by the price. Currently, the price has returned to the first stop level (0.382 Fibonacci retracement), but it still has to be verified by setting a new high. Retracements are typically 38.2% in an uptrend.
However, the institutional bias has shifted to the downside and the price appears to have plateaued at this point. The price may drop back to the reload zone between $1,320 and $1,130 if the buyers choose not to push. When the price reaches the bullish trendline’s level, it may provide support. Avoiding breaking this level will be crucial because the selling might then be able to establish a new bottom below $880.
In this unit of time, the momentum does not demonstrate anything unique. You must pay close attention to any divergences if the price rises again and moves closer to the weekly resistance. In fact, Ethereum might then create a double top, signaling the end of the downtrend’s retracement.
WILL ETHEREUM STILL PERFORM BETTER THAN BTC?
For more than a year, the price of Ethereum in relation to Bitcoin has been fluctuating. Although this pair’s primary trend is positive, anything can happen in this range.
When the price strayed from the target range, Bitcoin recovered control and dropped roughly 18% in relation to the dollar. The price appears to be recovering at the EMA 9 level, and the institutional bias is still optimistic. To avoid producing a double top at the resistance level, it is imperative to confirm by closing above the most recent high. Therefore, the two situations depicted on the graph are still plausible.