It’s been almost a week since Ethereum experienced “The Merge”!
How is ETH/USD looking and where might it be headed next?
Ether (ETH/USD): 1-hour
Ether (ETH/USD) 1-hour Chart
A few days back, Ethereum’s blockchain transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus algorithm in what was dubbed “The Merge.”
Hodlers had been looking forward to this upgrade for a while now. Not only would it limit the supply of ether, but it would also allow the network to consume significantly lower energy and approve transactions faster.
So what’s up with ETH/USD price action these days?
I’m seeing lower highs and lower lows connected by a freshly-formed descending channel on its hourly chart.Price is currently testing the channel resistance and might be due for another wave lower, possibly making its way back down to the bottom near $1,200.
Moving averages are pointing to a continuation of the selloff, as the 100 SMA is below the 200 SMA to reflect bearish momentum. However, Stochastic is dipping into the oversold region to suggest that buyers could regain the upper hand.
A break above the channel top of around $1,350 could set off a reversal from the downtrend. ETH/USD would also have to climb past the 100 SMA dynamic resistance to confirm that an uptrend is underway.
Some say that a combination of risk-off flows and pre-FOMC dollar rallies is weighing on crypto markets right now, so I’d look out for big moves during the Fed decision!
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