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After ranging for a bit all through yesterday, the Ethereum sell-off has resumed with the Altcoin crashing more than -7% in just today alone!
What is causing this sell-off in Ethereum, and what key levels should we be watching now? We will be answering these questions and more in this ETH analysis.
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Why Is Ethereum Crashing So Much?
The ETH sell-off might have a fundamental component to it. Today, the Ethereum network had a major software upgrade called the Merge.
This software ugrade switched the:
Ethereum’s proof-of-work system, where crypto miners competed to write transactions to its ledger for rewards to a more energy efficient ecsystem.
This merge event might have caused this quick sell-off as traders reacted to the news. However, fundamental price moevements are usally short lived and we believe there is a very high probability that we might see bullish reversal soon!
Ethereum Key Support!
The most important level we are watching right now in the ETH price chart is the $1,406 key support.
This 1-hour support might serve as a major level for the ETH bulls to come back into the market from in the coming days.
If this $1,406 level holds, there is a very high probability that we might see a bullish bounce in the Ethereum price as buyers rush back into the market.
Final Verdict!
We believe the Ethereum price crash we are witnessing play out might just be a reaction to the Ethereum Network upgrade called the Merge.
However, this reaction might not last. So in the coming days, we will be watching to see if prices will find support at the $1,406 key level and bounce back up.
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