Ethereum Merger is fast approaching, while the ETH price along with the other altcoins has again fallen in trouble. After maintaining reduced volatility for nearly a week, Ethereum is closer to dropping, slicing through the lower support levels very soon.
However, the drop may be fueled by induced volatility driven by $1.1 billion worth of derivatives set to expire any time from now. Therefore, the ongoing price slash may continue for some more time to hit $1550, as the option traders are in disbelief of the asset reaching $2000.
In the above 4-hour chart, it is clearly visible that the asset is respecting the lower support of the channel, each time it visits. A strong bearish trend may outpower soon as the asset has dropped below the 50-day & 200-day MA levels. However, in the higher time frame, the price is heavily consolidating along the 50-day MA levels.
A close below the MA levels could drag the ETH price lower while the potential targets could remain close to $1600. Only a strong breakout above $1700 and maintaining above these levels may pave way for the price to rise above $1760 and may also test the $1800 range.
Overall, investors need to closely watch the Bitcoin price movements as Ethereum (ETH) price shares a 70% to 80% correlation with the star crypto.
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Source: https://coinpedia.org/price-analysis/ethereum-price-analysis-levels-to-be-monitored-in-the-upcoming-24-to-48-hours/