Ether Chart Outlook Sours as Price Drops Below $1.4K; Fed Angst Weighs

An anticipated interest rate hike seems to be overshadowing Merge optimism.

AccessTimeIconJul 26, 2022 at 3:08 p.m. UTC
Updated May 11, 2023 at 5:28 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Ether's price (ETH) recently fell below $1,400, extending Monday's 10% slide, its biggest single-day percentage slide in over a month.

  • The two-day slide marks a clear breakdown of the six-day trading range of $1,460 to $1,660.
  • Sellers appear to be in total control, as evident from the nearly absent lower and upper wicks in Monday's candle and the going candle charts. Such candlesticks represent a bearish mood and often portend deeper declines.
  • The daily chart MACD histogram, an indicator used to gauge trend strength and changes, is charting smaller bars above the zero line, a sign of loss of upward momentum.
  • The focus, therefore, has shifted to the 50-day simple moving average at $1,293. Resistance is seen at the previous week's high of $1,664, followed by $2,160, the interim low registered on Jan. 24.
  • "A pullback in ether may find initial support at the 50-day MA (~$1,293), but we expect an eventual retest of interim support ($1,000) on the next down leg," Katie Stockton, founder and managing partner of Fairlead Strategies, wrote in a research note published Monday, noting short-term signs of investor exhaustion.
  • Stockton attributed the pullback from recent highs to short-term signs of exhaustion and said ether would take at least a few months to establish a major low.
  • An anticipated interest rate hike by the U.S. Federal Reserve on Wednesday seems to have taken center stage away from the supposedly bullish Ethereum blockchain's coming Merge, tentatively due on Sept. 19, which powered last week's rally from $1,200 to $1,660.
  • U.S. stocks were trading lower at press time, adding to renewed weakness in ether and the broader crypto market.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.