Decoding why Ethereum [ETH] investors are unhappy after 15 Sept.

Despite being the most important event in its chain’s history, the Ethereum merger fails to affect the positive price reaction of leading altcoin Ether [ETH].

According to data from Coin market value, the price of ETH rose to a high of $1,634 shortly after the merger, before falling steadily thereafter. At the time of writing, ETH is trading at $1,289.27, down 21% since the day of the merger.

The last days after the merger also saw a lot of ETH liquidations from the general cryptocurrency market.

According to data from coin glass, $128.8 million worth of ETH tokens were withdrawn from the market between September 16 and 17. During yesterday’s trading session (September 18), ETH liquidations totaled over $300 million.

At the time of writing, $171.92 million has been withdrawn from ETH markets over the past 24 hours, according to Coinglass data.

Source: Coinglass

Go south after the merger

At press time, ETH is trading at $1,289. As mentioned above, the leading alt has seen a double-digit decline since the merger four days ago.

Currently trading at two-month lows, the price of each ETH was briefly above the $1,300 price mark in early trading on Sept. 19. However, according to CoinMarketCap, the price of the coin has fallen by 11% in the past 24 hours.

The price/volume divergence at press time comes as data from CoinMarketcap shows the asset has seen a notable rebound in volume over the past 24 hours. It’s up 98%. This shows that buyers are exhausted.

The seller runs the town

The key indicator on the daily chart is pointing to heavy selling activity in the leading alts at press time. It has fallen steadily since the merger and is far from 50 neutral, with the relative strength index (RSI) at 33 at press time. Indicating increased selling pressure, Chaikin Money Flow (CMF) was negative -0.12.

Additionally, the Exponential Moving Average (EMA) confirmed the stance of sellers in control of the ETH market. At the time of writing, the 20 EMA (blue) is below the 50 EMA (yellow) line, indicating massive bearish action.

Interestingly, the location of the Moving Average Convergence Divergence (MACD) revealed the start of a new bear market cycle on the day of the consolidation.

Still a work in progress, ETH holders may see altcoin prices fall further in the coming days

Source: TradingView

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