The Ethereum price showed no positive effect despite the successful completion of the Merge.
Over the last 24 hours, the coin depreciated by 2%, and in the last week, Ethereum noted a 17% decline. At the moment, ETH is trading sideways with very little change in price.
A further drop in prices would mean that Ethereum could be captured by the bears. Technical indicators have turned bearish at the time of writing.
Sellers are dominating at the time of writing, which points towards increased chances of the bears taking over.
The current support line for Ethereum was $1,350, and if buyers push back into the market, Ethereum could move slightly upwards.
Ethereum could be facing strong resistance at the $1,500 price level.
Bitcoin’s chart also hasn’t looked very positive in the past few days as BTC revisited the $19,800 price zone. Increased buying power could lead to a short-term breakout near the $1,500 price zone for Ethereum.
Ethereum Price Analysis: One Day Chart
Ethereum was priced at $1,431 on the one-day chart | Source: ETHUSD on TradingView
ETH was trading at $1,431 at the time of writing. The coin was moving further close to its immediate support line of $1,350.
The immediate resistance mark for Ethereum was at $1,500, which earlier acted as a support zone for the coin.
It is now consolidating near the $1,400 price zone. With buyers coming back into the market, Ethereum might be able to zoom past the $1,500 price level.
However, it is yet to be seen how long the coin manages to trade above its overhead resistance. The amount of Ethereum traded declined in the past session, signalling that sellers have taken charge of the price action.
Technical Analysis
Ethereum displayed a fall in buying strength on the one-day chart | Source: ETHUSD on TradingView
ETH registered a fall in the number of buyers as they seemed to have lost confidence in the asset given that Ethereum barely registered positive movement after the completion of the Merge.
The Relative Strength Index was below the half-line, as an indication that buyers left the market.
The Ethereum moved below the 20-SMA line, and that was also another indication of the sellers’ driving the price momentum in the market.
Buying strength can help ETH rise above the 20-SMA, reinstating some positive price action.
Ethereum depicted a sell signal on the one-day chart | Source: ETHUSD on TradingView
Other indicators of Ethereum have also depicted bearish price action, with an intense sell-off across most indicators.
The Awesome Oscillator measures the price momentum and the overall direction of the asset. AO depicted red histograms underneath the half-line, signifying the sell signal for the coin.
Bollinger Bands depict price volatility and fluctuations.
The bands narrowed, which was indicative of rangebound price movement for Ethereum.
Featured image from Pixabay, chart from TradingView.com
