Apart from the general market decline, which held ETH at the cycle lows, there were both positive and negative responses to the buildup to The Merge. About 4.19 million ETH worth $5.32 billion had already been sold by holders prior to the event on September 15.
However, investors started purchasing ETH again immediately after The Merge, and within a week, 1.15 million ETH, totaling $1.46 billion, departed the exchanges.
Unfortunately, the price of ETH started to decline instead of rise, and at the time of writing, it was trading below $1,300. A number of long-term investors (LTHs) were also seen shifting their holdings, erasing more than 1.26 billion days in the process. These days are essentially the quantity of ETH that investors own times the number of days since their previous transfer.
The next targets…
For short-term traders who engage in scalping or intraday trading, the first of these is appropriate. Since the level has been tested numerous times since July for higher lows, $1,426 has been identified as the crucial resistance on the 4-hour chart. By doing so, ETH will also be directly above the downtrend wedge, the second significant barrier.
This downtrend, which has been in place since the last all-time high in November 2021, has previously been tested multiple times and, despite being breached, has not yet turned into support. ETH will therefore be on the way to testing the third and most significant resistance – the 23.6% Fibonacci level – if it succeeds in doing so this time.
This Fib retracement of the slide from $3,520 to $996, which coincides at $1,591, is expected to serve as the starting point for a rebound. As long as there are no bearish signals before the start of the new year in 2023, ETH may be on the road to performing better if it recovers during the following seven days.
Written by: Elena R