Ethereum’s (ETH) Near-Term Support Checked; What Next?

Ethereum just ended its most vital week of 2022. Meanwhile, ETH unsurprisingly displayed a bearish performance after the Merge hype eased. September 18 sessions had the second-largest crypto losing approximately 20% following a brief $1,700 exploration.

While publishing this news, ETH traded weakly at sub-$1.4K. The alternative token seems ready for stretched downsides amidst post-merge selling momentum plus bearishness in the overall market. Moreover, ETH is about to surrender the vital support of $1,430.

Nevertheless, the price showed some resilience at the foothold within the past three days. However, can it accumulate enough bullish force to neutral the selling momentum and catalyze a bullish pivot? Some metrics had flashed the amplified potential that Ethereum could surge this week.

For instance, demand within the derivatives market noted recoveries. Ethereum’s futures and options open interest indexes have pivoted, indicating demand return. The same pivot emerged the last time Ethereum retested the prevailing support during August’s final sessions.

Meanwhile, such observations will potentially trigger heightened sentiment within the spot market. That would translate to a strengthened bullish picture for the token. Also, the foothold retest catalyzed a surge in active deposit count.

That had ETH’s transaction volume soaring within the past three days. The surge in Ethereum activity around the current price suggested investor confidence returned following last week’s slump. That could show investors expecting recoveries in the coming few days.

Final Thought

Ethereum’s on-chain indexes suggest gradual demand return. That might welcome increased buying momentum in the coming sessions. Indeed, a massive demand would catalyze a sizable upside.

Nevertheless, market players should consider the market’s volatile nature and its vulnerability to fluctuations. That means the dangers of another massive sell-off prevail.

Also, Ethereum lost the Merge hype. That means the alt will unlikely lead the market rally, translating to potential slides as bears plague the cryptocurrency market.

ETH enthusiasts can expect dips towards $1,300 today. The alternative token shares a massive correlation with Bitcoin, which suffers an enormous bearish wave during this publication.

What are your thoughts about the current crypto market outlook? You can share your thoughts in the section below.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *