The Merge was a big event that everyone thought was going to bring about huge change for Ethereum and all its crypto cousins. The currency’s switch from proof of work (PoW) to proof of stake (PoS) was covered heavily by media sources, and there was even a countdown to the event on Google.
Ethereum Appears to Be Dropping
Now that the event is complete, what can we say is all that different? Sure, not that much time has passed. These things need necessary windows to show all that they can do, but thus far, it seems all The Merge has accomplished is bringing the price of Ethereum units down.
Not long after The Merge was done, the price of Ethereum fell by roughly ten percent. This is not at all what analysts thought was going to happen. In fact, there were many industry heads and alleged experts out there that predicted the price of Ethereum was going to spike. However, it appears the opposite has occurred, and some analysts are not too happy with the outcome.
Just before the asset hit its new staking protocols, Ethereum was trading in the low $1,700 range, though not long after, the currency had fallen to the mid-$1,500 range. It has since settled in a middle position and is hovering in the $1,600 range.
Tim Enneking – the managing director of Digital Capital Management – explained in a recent interview that The Merge was a classic example of buying the rumor and then selling on the news. He stated:
In this case, however, we do not expect the drop to last very long as more news on how the post-Merge PoS change is working materializes. Seems to be a real tour de force so far, and, assuming proves that to be correct, we see a bull market in ETH in the offing… As far as TA, for ETH really every round number in hundreds is big, with 2k being a massive resistance level (felt lower as traders front run it).
Jake Wujastyk – the vice president of strategic growth at Trend Spider – also threw his two cents into the mix, claiming:
Ethereum recently broke down through its symmetrical triangle support zone today with previous lows from July and August in play from $1,420-$1,440. If this level breaks, a retest of the previous lows could be in store.
Are More Slips Ahead?
Armando Aguilar – an independent cryptocurrency analyst – added:
Looking at the last low point (June 2022), Ethereum faced another ~12% drop to mid $800s. The next downside resistance level stands in the low $1,400s and if levels are breached, we could see a downtrend until the $1,200s area. Given the optimism post-Merge and market longs, investors expect Ethereum to breach upper-level resistance above [the] $1,570 area to reclaim the mid-$1,600s price.