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Prominent Crypto Analyst Has Important Warning About Ethereum

Mon, 09/19/2022 - 07:54
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Arman Shirinyan
Experienced crypto analyst believes that Ethereum is going to have hard time against Bitcoin
Prominent Crypto Analyst Has Important Warning About Ethereum
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If we take a look at the ETH/BTC chart, it may seem like the first cryptocurrency is on the verge of dropping into oblivion, considering the explosive growth of ETH against it. However, the post-Merge market does not seem to be playing by Ethereum's rules.

Between July 13 and Sept. 8, Ethereum gained almost 60% to its value against Bitcoin. The 60-day rally, however, did not turn out well as Bitcoin started to quickly gain some of its dominance back and Ethereum started to lose momentum after the Merge update went live.

Source: TradingView

In the last 10 days, Ether lost half of what it gained previously after an almost 20% correction. The situation on the daily chart may hint at an upcoming reversal to the trading range in which the asset moved before the Merge hype.

Why are investors giving up on Merge?

While the update itself was successful and went through without any issues occuring on the network, Ethereum saw a massive spike in selling pressure hours after that. Some analysts explained it with the common market rule: "Buy the rumor, sell the news."

Ethereum (ETH) Price Analysis for September 18

Ethereum's attractiveness as a financial asset increased exponentially ahead of the fundamental update; however, the absence of an explosive rally right after the update went live caused a disturbance among market participants that decided to protect themselves and exited their positions at a profit.

In addition to the Bitcoin pair, Ethereum is rapidly losing value against the U.S. dollar as the price of the second biggest cryptocurrency on the market plunged below the $1,300 price range. The next technical support level for the cryptocurrency is staying at $1,280, which is the upper border of June's trading range.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.