Top Smart Contract Platform Ethereum (ETH) Could Dip Below $1,000 Before The Merge: Bloomberg

The second-largest crypto asset by market cap faces bearish momentum ahead of its much-anticipated upgrade, according to a new report by Bloomberg.

The report says that based on technical analysis, Ethereum (ETH) could fall by over 30% from its current levels ahead of its transition from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) one.

The upgrade, referred to as “The Merge,” is slated to happen sometime in mid-September.

“Ether may drop to $1,000 for the first time in two months, with volatile price swings in the second-largest cryptocurrency ahead of its much-anticipated Merge upgrade.

Technical indicators on momentum and price trends show that the token’s tumble from a peak of about $2,000 in mid-August to the current zone near $1,500 is likely to continue.”

The leading smart contract platform is changing hands for $1,525 at the time of writing, down by slightly over 20% during the past two weeks.

Co-founder of independent research provider Fairlead Strategies Katie Stockton told Bloomberg that technical indicators, such as moving averages and the stochastic oscillator, are all signaling a bearish outlook for Ethereum.

“Ether has broken down below initial support from its 50-day moving average, increasing downside risk with short-term momentum now negative. The weekly stochastics have a downturn for the first time since April [suggesting a retest of support at about $1000 is likely] in the coming days.”

The stochastic oscillator is a momentum indicator that compares a specific closing price of a security to a range of its prices over a certain period of time.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong