ETH struggles to break $1,300 resistance

The combined ETH takes traders and investors into an exciting adventure. Ethereum has lost a staggering 26.36% in value since the much-hyped merger.

The coin’s recovery from June to August was completely wiped out by this drop and the market disaster of September 13.

Following the Fed’s announcement of a rate hike, fears of further declines in the coin are evident as the price struggles to break above the 61.80 Fib level, currently at $1,329. This could indicate that prices will continue to fall.

ETH on downward trajectory

From September 13th to 19th, the price of ETH fell sharply, quite different from the declines in May and June, but much smaller.

However, the result was the same; investor trust in the token and the entire ecosystem dropped dramatically.

ETH TVL did not improve much after switching to Proof of Stake. During the period from September 13 to 19, compared with the same period last year, it fell from $34.63 billion to $30.38 billion, a sharp drop of 12.27%.

At the time of writing, the price of the coin is moving up and down $1,300 area. This can be understood as an ongoing conflict between bulls and bears.

Additionally, ETH encountered a rejection wick earlier today (September 26). However, this bearish trend may be short-lived.

Possibility of positive price momentum

As of today, ETH has shown possible positive momentum indicators at the micro and macro levels. This can bring a touch of optimism to ETH traders and investors.

The Stoch RSI is rising from oversold territory. This suggests that the bulls are gathering momentum, which could propel ETH above the $1,300 price resistance.

At the time of writing, ETH has achieved this on both the micro and macro scales.

On the 1-hour chart, Ethereum bulls are currently trying to consolidate their position above indicated resistance in order to turn it into support. Momentum indicators are trending up.

However, this may only be a small pumping cost. As prices fell 4.04% between Sept. 25 and Sept. 26, traders are likely to buy the dips.

This price drop may provide investment opportunities for day traders.

ETH total market cap at $162 billion on the daily chart | Source: TradingView.com

Featured image from CryptoMode, Chart: TradingView.com

Source link