Price Analysis

Top Reasons Why Ethereum Price May Still Retrace Despite the Positive Market Sentiments Ahead of the Merger

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Aug 1, 2022

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Article Highlights
  • The recent rejection from above $1700 levels may have set a bearish narrative for the second largest crypto

  • Despite the Merge event is looked as an opportunity to gain huge bullish momentum, yet the possibilities of a notable pullback haunts the ETH price rally

  • While a daily close above $1700 may invalidate the bearish narrative for the Ethereum price

As Bitcoin price markers a raise above $24,500, Ethereum price also reaches levels close to the crucial resistance at $1840. The other altcoins also gained huge strength and range high slicing through their respective local resistance. However, as BTC price faced rejection, Ethereum price too dropped, dragging most of the altcoins lower. 

Therefore, in such a case, will the merger event which is scheduled in September, revive the strong uptrend?

A popular crypto hedge fund, Galois Capital share a diverse narrative and warned about the complex situations incoming ahead of the scheduled merge. They highlighted the miner’s stand during the PoS transition which is about to break the current ETH chain into multiple chains.

If in case, the ETH DAO hack event in 2016 repeats where the Ethereum chain was forked into Ethereum Classic, a similar event may occur again. The asset has been displaying some exhaustion due to the weakness after it got rejected from the levels above $1700. Due to the lack of buying pressure, the asset is facing constant rejections. 

Therefore, a significant drop of nearly 10% appears to be likely that may drag the price below $1600. If the Ethereum(ETH) price fails to hold at these levels, then a major drop may pull the price close to $1500 initially and may dive to test $1000, ensuring through $1300 levels. 

Constructively, a strong daily close beyond $1700 may invalidate the bearish narrative and pave the way to test the crucial resistance at $1840 and later at $2000.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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