Ethereum Market Might Experience Further Lows, Before Breakout
- is headed for another downward shift.
- Crypto analyst says higher lows will occur before breakout across market.
- Post-merge results for Ethererum are not as good as anticipated.
Ethereum is headed towards another possible downtrend but the future may not be all gloomy and dark. Founder of crypto platform Eight, Michaël van de Poppe, tweeted a screenshot of Ethereum’s current price performance sharing that higher lows will take place before any growth is observed.
The entire market is still consolidating, but eagerly waiting for the highs to be tested.Open interest still going through the roof -> lots of people eagerly shorting the markets. Higher low needs to be established, and then a significant breakout across markets is likely. pic.twitter.com/fy26Z1JZYz
— Michaël van de Poppe (@CryptoMichNL) October 18, 2022
Highlighting the growing curve when it comes to open interest, he says that users are eagerly shorting the markets.
The value and results for Ethereum that users and investors had in mind prior to the Merge didn’t match with those post-Merge. The current market conditions and the challenging macroeconomic state of the world contributed to the letdown.
Even though it wasn’t a total failure, it didn’t live up to the hype that was created by fans pre-Merge.
The US Federal Reserve announced that another 75 basis point hike in interest can be expected in November if economic conditions fail to improve. Currently, ETH is experiencing a significant loss in value and the Feds increasing rates are stressing out all the users.
The altcoin maintained a trading price of $1408.15 to $1219.29 since September 19, with a 61.80% support for the Fibonacci replacement level. Moreover, a downward shift was observed in the bull-bear power indicator.
This indicates two things. Firstly, it should be noted that the prices going over the $1384.77 resistance level is difficult. Secondly, the 20-day to 250-day simple moving averages are all positioned at resistance levels, pressuring the downward curve further for the altcoin.
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