Crypto Industry News:
Last week we witnessed one of the most anticipated developments in the cryptocurrency industry, ie Ethereum switched to Proof of Stake.
At the time of the update, the ETH price was around $ 1,600 and a few hours later it had risen to around $ 1,650. However, it was then that the bears took full control of the market and brought prices down to a 2-month low, i.e. below $ 1,300. At the time of writing, ETH costs around $ 1,340, down almost 8% in the last 24 hours and about 20% from the event mentioned.
This has made many believe that the update has turned into what transactions refer to as "buy the rumor, sell the news." In other words, investors bought ETH when the merger date was announced earlier this year and sold it when the actual event took place.
Another possible cause of the drop could be that many people may have purchased ETH while waiting for the ETHW airdrop. It is also worth noting that the macroeconomic situation remains difficult and the market is waiting for the last Fed decision on interest rates, which is due later this week.
Technical Market Outlook:
The ETH/USD pair had broken below the last month's low seen at the level of $1,423 and made a new weekly low at the level of $1,281 before a shallow bounce occurred. The levels of $1,358, $1,407 and $1,424 will now act as the technical resistance for bulls as the market is trying to extend the bounce from the extremely oversold conditions on the H4 time frame chart. The next target for bears is seen at the level of $1,281, $1,267, $1,255 and below. Despite the extremely oversold market conditions on the H4 time frame chart, the momentum remains weak and negative, which might indicate the ETH is still in the short-term down trend.
Weekly Pivot Points:
WR3 - $1,460
WR2 - $1,386
WR1 - $1,346
Weekly Pivot - $1,312
WS1 - $1,272
WS2 - $1,238
WS3 - $1,164
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August at the level of $2,029. The key technical support for bulls is seen at $1,281.9. If the down move will extend, then the next target for bears is located at the level of $1,000.