- Ethereum’s merge has failed to inspire buyers, with the price falling through crucial support
- Since hitting $2,000 in August, Ethereum has reversed 35%
- Fundamental news typically has no impact in a bear market
Ethereum’s merge may have garnered headlines all over the world, but it has had the reverse impact on the crypto market. Ethereum hit $2,000 last month on the back of excitement over the merge, but this morning it has fallen through a crucial line of support at around $1,400, and there is little suggestion that a reversal is coming. Such action is typical in a bear market, where positive fundamental news only has a short term positive impact before reverting back to the mean price action.
$2,000 Barrier Proves Impossible to Beat
Since hitting resistance at $2,000 five weeks ago, Ethereum has been on a downward trajectory, a trend that even the merge hasn’t been able to halt. This morning it took the dangerous step of falling through an important level of support which ad held as support since July:
This move puts it at risk of putting in a lower high and continuing a drop back to the June lows:
The total crypto market, too, is looking like it is preparing to revisit recent lows having failed to get any upward momentum from recent bounces:
This behaviour is further proof, if it was ever needed, that crypto is in a bear market. In such times, even the most positive fundamental news has a short-lived positive impact, or even no impact at all, and the merge has proved to be no different. Once any positivity to be gained from this has worn away, price action returns to what it was doing before – which in crypto’s case was down.