As it has been expected, ETH entered into correction right after the Merge fork was implemented during the previous week. This case is a consequence of many speculative positions, both on the spot and derivatives market in expectation of a price increase due to announced improvement. Closing of positions due to profit taking caused significant volatility of ETH price and its push to the downside. As per professionals involved in a matter, the latest fork might further negatively impact ETH`s price on derivatives markets by the staking yields, as staked ether could be withdrawn after the implementation of Shanghai fork, which is scheduled for mid-2023. In this sense, the question arises if ETH had bottomed during this week, or the price might be further corrected? Anyway, during the first week of mining and trading, ETHPoW reached the highest price of $10.6, however, the price soon went down to $8 considering some issues that miners have experienced with the connection to the network.
At the start of the week ETH reached its highest level at $1.794, after which the coin entered into correction, moving to the lowest weekly level at $1.400 support line. ETH is finishing the week slightly above this level. The RSI has been pushed during the week from level 59 down to 39, still, the charts are not clearly pointing that the market is heading toward the oversold zone. Moving averages of 50 and 200 days continue to move as two parallel lines, without any indications that stronger convergence might start soon.
ETH will start a week ahead by testing a $1.4K support line. As per current charts, there is a higher probability that this line will withhold the pressure on this occasion, when the price might shortly revert to the upside. Currently, the most probable level could be the resistance line at $1.7K, which is to be tested for one more time. However, in case that the $1.4K support is broken by some chance to the down side, current charts are pointing that $1.2K might be easily the next stop for ETH. Still, at this point, there is decreased probability for such a move.
At the start of the week ETH reached its highest level at $1.794, after which the coin entered into correction, moving to the lowest weekly level at $1.400 support line. ETH is finishing the week slightly above this level. The RSI has been pushed during the week from level 59 down to 39, still, the charts are not clearly pointing that the market is heading toward the oversold zone. Moving averages of 50 and 200 days continue to move as two parallel lines, without any indications that stronger convergence might start soon.
ETH will start a week ahead by testing a $1.4K support line. As per current charts, there is a higher probability that this line will withhold the pressure on this occasion, when the price might shortly revert to the upside. Currently, the most probable level could be the resistance line at $1.7K, which is to be tested for one more time. However, in case that the $1.4K support is broken by some chance to the down side, current charts are pointing that $1.2K might be easily the next stop for ETH. Still, at this point, there is decreased probability for such a move.
