That’s it, The Merge is effective, Ethereum (ETH) is now a Proof-of-Stake network. The whole crypto community was excited to wait for this historic event. The market was stable during the migration, judging by the Ethereum chart. There is less volatility than expected.
Chart analysis: ETH holds its course
The second cryptocurrency by market capitalization has been in the bullish channel for three months. Crypto traders did not find trading opportunities after the Merge. Indeed, ETH has (almost) not moved, while most traders have anticipated high volatility in the market. The merger was only followed by a small “pump and dump” on the Ethereum chart.
A few hours after the event, the price of ether remains in a range between $1570 and $1653. Which leaves no opportunity for those who do crypto trading. On the other hand, it looks like the bulls didn’t have enough strength to push the price out of the long red candle on September 13th. Nevertheless, they were able to achieve a small pump of 3.4%.
6% drop at US session open
While the London session didn’t really react to the success of The Merge, the US session reacted with a downfall. Indeed, at the opening of the US stock markets, Ethereum (ETH) suffered a drop of 6%.
For a technical analyst, this is probably a logical continuation of the shoulder-head-shoulder pattern. This figure is easily seen by putting the Ethereum chart on a daily or h4 scale. The top of the “head” sits at $2030, while both shoulders sit at the same level: $1780. Thus, this fall seems to be justified according to this chartist figure.
It should also be noted that following this drop, ether is leaving the bullish channel that has held for three months. Against all expectations, this crypto then made a downward breakout. But to reach what level? As we saw in our previous analysis, there is an interesting zone between $1280 and $1355. The level around $1280 being a broken resistance zone. Thus, this level becomes a potential support to test for Ethereum. The $1355 level, meanwhile, is the low of the July 26 session. This is a reversal point (swing point) on the chart. Which means that there are probably a lot of orders ofpurchase around this level.
In my opinion, this drop is nothing but a way for Ethereum to reach an area where there are enough buy orders. This will allow him to start a bull run for several months.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
