The market sentiment was bearish after The Merge, and Ethereum fell to a three-week low Friday. Today, the world's second-largest cryptocurrency fell below $1,500, just 24 hours after historic migration from proof of work (PoW) to a proof of stake (PoS). Bitcoin fell to a multiweek low.
Bitcoin (BTC), which fell below $20,000 Friday, was ahead of the expected U.S. Federal Reserve interest rate increase next week.
Today's session saw BTC/USD drop to $19,625.22 intraday, bringing prices closer to $19,300.
After disappointing U.S. Inflation data, crypto markets were volatile for most of the week.
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 bitcoin's recent decline coincides with a new floor in its 14-day relative strength (RSI) index.
Now, the index is at 43.48. The next move will be towards resistance at 46.00. If this happens, BTC could trade above $20,000.
Ethereum (ETH), which fell to a two week low, was again in red during today's session.
After yesterday's peak of $1594.54, ETH/USD dropped to $1,451.56 today.
Ethereum moved to a support level of $1,430 but did not collide with it. Bulls returned to push prices higher.
The world's second-largest cryptocurrency trades close to today's bottom as of writing. This was the lowest level since August 29th.
Many believe that a reversal may occur once the current red wave has subsided. The first target for bulls is likely to be the recapture of $1,500.
The Federal Open Market Committee's (FOMC), next week's meeting will be a crucial test for prices. There is the possibility of a 100-basis points hike. Many are still uncertain about how this will affect market confidence.
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By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: ETH Hits 3-Week Low as Bearish Momentum Increases Following The Merge
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-eth-hits-3-week-low-as-bearish-momentum-increases-following-the-merge/
Published Date: Fri, 16 Sep 2022 12:31:38 +0000
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