The eternal second has lost almost 27% of its value since the Merge. If the sellers stay in control, we can probably see ethereum at $1000 before the end of the year.
Ethereum (ETH): a movement in favor of the bears since the Merge
The migration of Ethereum from PoW to PoS should have been favorable for a rise in its price. But it looks like the sellers are staying in control and keeping the price below $1638.52. Ethereum is thus at -27% since the Merge. The upside moves at the end of October were not enough for a breakout of this level to the upside. Indeed, after having brushed this area around $1638, the price immediately started a 30% drop. As of this writing, ETH is currently trading in the $1290 and $1170 range. Despite the fact that Ethereum has lacked movement since Monday, the bears still remain in control.
Indeed, the economic calendar does not indicate any action by the Fed on an important macroeconomic data. This is prompting investors to pay more attention to minor peers and exotic peers for this week. The trading volumes of assets paired with the dollar decrease accordingly, such as the case of Ethereum. This can also be seen in the narrowing Bollinger Bands on a 15 minute chart. This is synonymous with a calm and less volatile period in the market.
Scenarios to consider
Based on our analysis in a previous article, the current range should be followed by a slight rise towards $1400. From there, the price will have to drop towards $1000 and possibly below. In favor of the sellers, this is the most likely scenario on Ethereum. But before all that, it could be that the current range movement lasts until the end of the month.
If the price crosses the $1400 level, we can consider the bullish scenario. In this case, the price will have to go back to the resistance $1638. Then there will eventually be a pullback on the $1400 support before a bullish rally towards $2000. Although less likely, it is still a possible scenario.
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