ETH has embarked traders and investors on an exciting journey following the merger. The token's recovery from June to August was utterly wiped out by this drop and the market disaster on September 13.
Fears of a further drop in the token's price are palpable as it struggles to break through the 61.80 Fib level, which is currently at $1,329, following the U.S. The report of the Federal Reserve's interest rate hike. This could imply that prices will continue falling.
ETH is on a downward trend
From September 13 to 19, the price of tokens fell precipitously, similar to but much smaller than the drop in May and June. However, the result is the same: a significant drop in capital contributed to the token and the ecosystem in general.
The ETH TVL has not improved significantly since the transition to proof-of-stake. It dropped from $34.63 billion to $30.38 billion between September 13th and 19th, the very same time span as last year, a 12.27% drop. At the time of writing, the coin's price fluctuates between $1,300 and $1,400. This can be seen as a constant battle between bulls and bears.
The platform also experienced a refusal wick earlier today, September 26. Nevertheless, this bear market trend could be fleeting.
Possibility of Positive Price Momentum
It has already shown markers of potentially good momentum on the macro and micro levels. This can provide traders and investors with a glimmer of hope.
From the oversold area, the Stoch relative power index has been rising. This suggests that the bulls are gaining traction, pushing the token past the $1,300 price resistance. As of this writing, ETH has already achieved this both on the macro and micro scales.
Ethereum bulls are constantly trying to centralize their stance above the noted resistance on the 1-hour chart to change it to support. The momentum indicator is on the rise.
However, this is most likely just a tiny investment. Traders may buy the dip after the price fell 4.04% between September 25 and September 26. This price decline may provide an investment opportunity for day traders.
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