ETH On Watch
Following the much-vaunted Ethereum network merge which was completed on September 15th, ETH has been fairly lifeless. Ahead of the network consolidation, which has seen ETH issuance drop by 98%, many players were calling for a sizeable rally in ETH. Looking at current price action, we can see that ETH actually continued lower through the move before bottoming out last week into a test of the 1268 support. Price is now starting to turn higher within the recent bear channel, suggesting hope for the start of a fuller recovery which would define the current lows as a higher low against the YTD lows. With this in mind, bulls can look to trade a break of the 1715 level, at which point the bear channel will already have been voided, targeting 2422 in the longer term.
Keep An Eye On
While there was much hype ahead of the merge, limited action since suggests that either crypto-callers got it wrong, or the impact of the merge will take longer to work into a rally. Either way, the conditions are interesting though general risk flows are likely the bigger driver to watch. Put simply, if USD sell off and we see any decent rebound in risk assets, ETH should rally. If USD continued higher, a rally looks tricky though not impossible.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.