Ethereum (ETH) finds itself again, on a very critical hurdle. Sellers are starting to fight back and buyers might give in to this resistance. This is the opening price on the day of The Merge.
Ether (ETH) Price Stabilizes
The price of ETH is moving, and is currently stabilizing above $1500. Indeed, after hitting $1640, the sellers begin to retaliate. This is the opening price on the day of The Merge fulfillment. This has led this crypto into a range move this week. This is therefore a major resistance that ethereum (ETH) buyers will have to cross to continue the bull run of the year.
If this is not the case, we can consider a correction for the next few days. Which is also a very likely scenario. Indeed, the RSI is starting to drop below 70. This shows that the bullish momentum is starting to weaken. It could then be that Ether (ETH) retraces towards the nearest support.
Take a short position, if…
If we bet on a bearish scenario, we could take a short position in the short term. This will be a trade from $1600, towards the support at $1370. However, there is a condition for this short position in ether (ETH) to be confirmed. First, we will have to wait for the breakout of the support at $1500. This is indeed a critical support level. Thus, if the price breaks this level down, it will potentially change the price structure to bearish. Once the price breaks through this level, a correction towards $1600 could be expected. That’s when we’re going to place our buy order. For this short position, our stop could be placed slightly above the open price of The Merge at $1640. The target can be placed around $1370.
This position bets on a short-term bearish scenario, where Ether (ETH) is making a year-to-date bull run correction. It is therefore risky and requires good risk management. If you prefer to be cautious, you will have to wait for the price to come back below $1400, and then buy.
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