On Thursday, Ethereum dropped below $1,600 despite the completion of the much-anticipated Merge event. This event saw the transition from proof-of work (PoW) to a proof of stake (PoS). The token fell below the $20,000 mark in today's session.
Bitcoin (BTC), which fell below $20,000 Thursday due to bearish sentiment around cryptocurrencies.
The crypto markets were hit by a red tsunami following the release of U.S. inflation data this week. Bitcoin has fallen more than $2,500 since the beginning of the week.
This trend continued into today's session with BTC/USD falling to an intraday low at $19,793.40 this morning.
This decline is less than one day after the highest-valued token in the world was traded for $20,370.00.
The chart shows that this sell-off occurred when prices broke through a key support level of $20,200 which was the last line for bulls.
BTC bulls seem to have responded somewhat as of writing. The token is currently trading near the support of $20.150.46.
The Merge was Thursday's focus as ethereum, (ETH), moved from proof-of work (PoW) to a proof of stake (PoS).
It is expected that the world's electricity consumption will drop by 0.2% as a result of Thursday’s eagerly awaited switchover.
Despite this, the intraday low for ETH/USD was $1,572.60. Markets seemed to have priced in the move.
After completion of The Merge, the temporal support level of $1,615 was reached, pushing ethereum closer to a one week low.
Many believe bears will try to lower prices, and some think a $1,550 floor could be their exit target.
As uncertainty increases about what the Merge event will have on the future value of ethereum, volatility will increase.
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By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: ETH Drops Below $1,600 Following Completion of The Merge
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-eth-drops-below-1600-following-completion-of-the-merge/
Published Date: Thu, 15 Sep 2022 13:30:03 +0000