Bitcoin, Ethereum Technical Analysis: ETH Drops Below $1,600 Following Completion of The Merge
Ethereum fell below $1,600 on Thursday, despite the successful completion of the highly anticipated Merge event. The event saw a migration from proof-of-work (PoW), to a proof-of-stake (PoS) system. Bitcoin was also lower in today’s session, with the token falling below the $20,000 level.
Bitcoin (BTC) fell below $20,000 on Thursday, as sentiment surrounding cryptocurrencies remained bearish.
Following U.S. inflation data earlier this week, crypto markets have been hit with a red wave, with bitcoin falling by over $2,500 since the start of the week.
This carried over into today’s session, with BTC/USD slipping to an intraday low of $19,793.40 earlier this morning.
The decline comes less than a day after the world’s most valuable token traded at a peak of $20,370.00.
Looking at the chart, this sell-off took place as prices broke out of a key support point of $20,200, which was the last line of defense for bulls.
As of writing, BTC bulls have somewhat responded, with the token currently trading close to the aforementioned support of $20,150.46.
As a result of Thursday’s highly anticipated switchover, it is reported that worldwide electricity consumption will be reduced by 0.2%.
Despite this, ETH/USD fell to an intraday low of $1,572.60, as markets seemed to have already priced in the move.
Following the completion of The Merge, ethereum fell below a temporal support point of $1,615, pushing price closer to a one-week low.
Many now believe that bears will attempt to send prices lower, with some expecting that a floor of $1,550 could be the intended exit target.
Overall, levels of volatility will rise over this period, as uncertainty heightens on what the Merge event will mean for the value of ethereum going forward.
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Will The Merge be positive for the price of ethereum in the long run? Leave your thoughts in the comments below.