According to a recent Bloomberg article, Ethereum, the second largest digital currency, is facing the possibility of falling to the $1000 levels or even below.
Bloomberg noted that the Ethereum price dropped from the August peak of $2,000 to the current $1,500 level. Besides, he referred to technical indications that with the much awaited Merge update approaching and the event announced that it will be between September 10 and 20, it could drop even more.
Katie Stockton, co-founder of Fairlead Strategies, told Bloomberg that Ethereum price fell below initial support from the 50-day MA. told. This has made the risk of much lower levels coming in the short term stronger than before. Stockton believes this could happen in the coming days.
“Ethereum has dropped below initial support at its 50-day moving average and downside risk is increasing while short-term momentum is negative. Weekly stochastic drops for first time since April; This indicates that a retest of the support at around $1,000 is likely in the coming days.”
Koinfinans.com As we reported, Ethereum Merge is expected as a major bullish event for ETH. This update will migrate Ethereum from the currently used Proof-of-Work to the Proof-of-Stake protocol, thus consuming less energy and as new coins will be minted much more rarely in PoS than in PoW It will make it more limited. However, as the event approached, the price went down rather than up.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.