The post-Merge landscape of Ethereum took many by surprise; the figures and the outcome weren’t something they had in mind.
Bad macroeconomic conditions and other negative factors overshadowed what was expected as a breakthrough. It was, in some ways, but the fanfare pre-Marge was so hyped up, until a few days following the event.
The optimism that had been building up in the days leading up to the CPI report, which ultimately brought down the broader financial markets, was wiped out in the fall on September 13.
Ethereum (ETH) Feeling Fed Hike Stress This Early?
As of this writing, Ether was down as it was reported that a further 75 basis point hike in interest rate by the U.S. Federal Reserve is possible in November if economic conditions don’t improve.
ETH, this early, could be starting to get stressed with the Fed’s looming rate bump. The chart suggests that ETH may be in for more losses, but what does it actually show?
Chart: TradingView.com
If the graph is any indication, things aren’t looking so rosy.
Since September 19th, the altcoin has traded between $1,408.15 and $1,219.29, with support located at the 61.80 percent Fibonacci retracement level, now at $1,265.02. The bull bear power indicator has formed a downward pointing at the time of writing.
This may indicate that it will be even more challenging for prices to rise above the $1,384.77 resistance level. Since September 15th, the center of the Bollinger Band has been providing dynamic resistance.
The indicator also revealed the formation of a crunch zone, making a price move over $1,384.77 more difficult.
The 20-day to 250-day simple moving averages are all acting as resistance levels, adding to the downward pressure on the altcoin.
The intraday chart displays a falling triangle formation. In light of the aforementioned, this may indicate to investors and traders that a further correction may occur in the near future.
With present market pressures, a market correction might push the price down to $1,220.35, a 10% decrease.
Speculative Bullish Run – How This May Transpire
If the support at $1,265.02 holds, the resistance at $1,384.77 could be retested. This hypothetical rise is supported by the Chaikin money flow index, which indicates the market is still dominated by buyers to some extent.
Bullish investors can use the CMF as a springboard and a strength boost for the previously mentioned weak support line. Even if the momentum indicator is bearish, it is creating a slow rise.
These variables can assist the price eventually reach the $1,384.77 resistance level and break through it, allowing a rebound to occur. If today’s trading session ends on a poor note, investors and trailers can participate in the price rebound by buying the dip.
ETH total market cap at $162 billion | Featured image from Kryptografen, Chart: TradingView.com