Ali Raza
Ethereum’s price is bearish today, reflecting the movement of the broader cryptocurrency market. At the time of writing, Ether had plunged by 7.3% to trade at $1,281 at the time of writing.
Ethereum turns bearish today
The price of Ether has been bearish during the past 24 hours. Yesterday, Ether registered a weak bullish flag as the price pushed towards $1400. However, the bulls were not strong enough to break past this resistance, and the price has since retreated to the current levels.
During the past 24 hours, ETH has traded within a range of $1268 to $1390, indicating high volatility (as seen below). ETH’s trading volumes during the past 24 hours stand at $16 billion. Ether’s market cap has also dropped to $154 billion during this time.
The global cryptocurrency market has turned red during the past 24 hours, as Bitcoin has also dropped by around 7% to trade below $19K. The rest of the market also follows this bearish trend and has shown similar results.
Ether’s failure to overcome the $1400 resistance level increases the chances of a reversal. Ether is currently in danger of dropping below the support level of $1240, and if this happens, a drop towards July 2022 will happen, with a drop to $1000 being more likely.
The price indicators prove that a bearish trend is still at play. The Relative Strength Index (RSI) is currently at 44, showing buyers seem to be gaining market control. However, Ether is yet to reach the oversold levels, and the price could consolidate at the current levels for a while before a downtrend or an uptrend is confirmed.
The Moving Average Convergence Divergence (MACD) further proves the bearish sentiment. The MACD line is below the signal line, proving that the bearish sentiment is strong. Therefore, traders should expect the current price reversal to continue, making the drop to $1000 even more likely.
On the other hand, going by the past ETH price movements over the past few months, there is a possibility that the price could not push lower than $1200. Since dropping below $1300, the downtrend has cooled, and traders looking to derive short-term gains could buy now and sell before the next resistance is tested.
The major resistance level preventing ETH’s uptrend towards the $2000 level is $1500. Assuming that bulls take back control and they surpass the $1400 mark, it could push its boundaries past $1550. The most important levels to watch on ETH’s price chart are $1240 and $1400, as they could determine where the price is headed.
Cardano’s co-founder becomes one of the Merge critics
Ether has been bearish since the Merge happened two weeks back. The Merge saw the Ethereum blockchain switch from a proof-of-work to a proof-of-stake blockchain, and the process was seen as one of the most important events in the web 3.0 & crypto sectors.
While the Ethereum network has been running well since the Merge was implemented, not every crypto community member is impressed with the switch to PoS. The founder of Cardano, Charles Hoskinson, has joined the list of those criticizing the Merge saying that he never expected the Merge to be “as rough as it is.”
While speaking in an interview with TechCrunch, Hoskinson addressed the issue of Ethereum becoming more centralized. After the Merge, around 42% of blocks on the Ethereum network are held by Lido and Coinbase.
Hoskinson has also criticized the inability of Ethereum stakers to withdraw their staked tokens. The Cardano founder said that Ethereum is now the “Hotel of California of Crypto,” where people can check in but can never check out. He said that staking a large sum of Ether could increase volatility. Staked Ethereum will be withdrawn after the Shanghai upgrade is implemented sometime next year.
He added that Cardano offered liquid staking, where 74% of the staked ADA could be moved at any time. Hoskinson further said that the Merge did not solve the issues facing Ethereum, such as scalability, performance, and cost reduction. These issues would take longer to solve through other planned upgrades in the coming years.
Another issue that Hoskinson addressed was the phasing out of miners from Ethereum. According to him, Ethereum violated the principles of Bitcoin and the entire crypto space when they “fired people” by getting rid of all the miners.
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This article was written for Business 2 Community by Ali Raza.
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