Choose country & language:

Ethereum gains support as merge draws close

Home >  Daily Market Digest >  Ethereum gains support as merge draws close

Written by:
Myrsini Giannouli

06 September 2022
Share the article

Risk sentiment has been low over the past few weeks on rising odds of a steep Fed rate hike in September. Severe rate hikes stifle economic activity, putting pressure on cryptocurrencies. Markets are pricing in a Fed rate hike of at least 50 bp in September, with odds in favor of a 75 bp hike.

Rising prospects of aggressive economic tightening have also renewed recession fears, weakening stock markets. The decline of stock markets has pushed cryptocurrency prices down, as crypto markets have been following stock market trends. 

Risk sentiment dropped even further on Monday, putting pressure on riskier assets, such as cryptocurrencies. A massive energy crisis is threatening Europe, following Russia’s announcement that the Nordstream 1 gas pipeline would be offline indefinitely. 

Bitcoin traded below the key $20,000 level on Monday, falling to $19,700. Further support can be found at the $19,200 level, while resistance may be encountered near $20,500 and further up at $21,800. 

Ethereum price on the other hand rose on Monday, climbing above $1600. If Ethereum's price declines, it may encounter support near $1,550 and further down at $1,420. If the Ethereum price rises, resistance may be encountered near $1,640 and higher up to $1,720.

Ethereum gained support on Monday on Reports that Ethereum main net merge will begin on September 6th. Ethereum Classic, a hard fork of Ethereum, hit an all-time high hash rate on Monday. 

Ethereum price has been boosted in anticipation of the so-called ‘merge’, which will pass through a series of phases in the next couple of weeks and is expected to be finalized on September 19th. The Merge from the Proof-of-Work to the Proof-of-Stake method will be a significant network upgrade that is expected to lead to an increase in demand for Ethereum.

BTC/USD 1h Chart

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

Dollar slides as US yields ease

Myrsini Giannouli 05 October 2022

Gold extends gains as US yields slip

Myrsini Giannouli 05 October 2022

Oil soars on OPEC output cut concerns

Myrsini Giannouli 05 October 2022

Cryptocurrencies edge higher as market sentiment shifts

Myrsini Giannouli 05 October 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!