Ethereum (ETH) Price Takes a Hit Again; What’s Next?
The euphoria of new technology in Ethereum seemed to fade away because ETH was down significantly last week after the Merge upgrade. The short-term time frame indicates a downtrend because of high selling pressure, which can be a cause of speculation from the investor regarding the ‘Grand’ merger.
Overall, developers believe it will make a better network in the next five years (many upgrades are yet to release). Still, many investors triggered the uncertainty due to these massive core changes on the Ethereum network. The full impact of this update is yet unknown because it is still new on the Ethereum main net.
That is why Ethereum may continue the volatility due to its basic core changes and the uncertain macroeconomy in the world. The latest CPI report in the USA also influenced the price of major indices and cryptocurrencies. Investors may face more pressure from the Federal Reserve’s rate hike in the next few months.
Overall, cryptocurrencies are riskier assets in 2022 than in the last two years. It is true that more risk leads to better rewards, so crypto investors should think about the long-term gain because once the macro economy stabilizes, cryptocurrencies will change the bearish momentum and provide a great return in the next few years.
If you are interested in investing for the long term in ETH, read more about the technical analysis and predictions to find out the ideal buying price for a long-term investment.
At the time of writing this post, ETH had broken the support of $1500, heading towards the next support of $1000. It is trading around $1300 in the lower range of the Bollinger Bands. Ethereum formed higher highs in July and August, but it changed the momentum in the last week of August and consolidated within a range of $1800 and $1500.
Now, most technical indicators are reflecting bearishness on the daily chart, but if ETH changes the momentum, it will face the resistance of $2000 on the upside. It is not the ideal time to invest for the short term; you should wait until it hits the level of $1000.
On the weekly chart, after taking support at around $1000, Ethereum has faced resistance at around $1950. After that, it formed another lower high, around $1750, with a low of $1450, but now it is forming another lower low.
However, ETH can consolidate within a range of $2000 and $1000, but if it breaks the $1000 support, then you can consider it as long-term bearish. We think you can accumulate some coins due to the strong fundamentals of Ethereum, but the technicals currently suggest that it is not an ideal time to invest for the long term.