In addition to the overall market decline that has kept ETH at cycle lows, there have been positive and negative reactions to The Merge’s accumulation. Before the September 15 event, holders had sold about 4.19 million ETH worth $5.32 billion.
However, investors started buying ETH again immediately after the merger, and within a week, 1.15 million ETH, totaling $1.46 billion, left the exchange.
Unfortunately, the price of ETH is starting to fall instead of rising, and it is trading below $1,300 at the time of writing. Some long-term investors (LTH) were also seen shifting their holdings, erasing more than 1.26 billion days in the process. These days are basically the amount of ETH the investor has multiplied by the number of days since the last transfer.
For scalping or intraday For short-term traders who trade, the first one is more suitable. As this level has tested higher lows several times since July, $1,426 has been identified as a key resistance level on the 4-hours chart. In doing so, ETH will also be directly above the downtrend wedge, the second important hurdle.
This downtrend has been in place since the last all-time high in November 2021, having been tested multiple times before and, although broken, has yet to turn into support. Therefore, if this time is successful, ETH will test the third and most important resistance level – the 23.6% Fibonacci level.
This Fib retracement level from $3,520 to $996, which coincides with $1,591, is expected to serve as the starting point for a rebound. As long as there is no bearish signal before New Year 2023, ETH may be on a better path if it recovers in the next 7 days.
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