Ethereum Market Trends: Potential Lows Before Breakout

Current Price Trends and Analysis

Ethereum is currently experiencing a downward trend, with potential further lows expected before any significant market breakout. Crypto analyst Michaël van de Poppe highlights that higher lows will precede growth, suggesting a period of consolidation before upward momentum.

Market Consolidation and Open Interest

The cryptocurrency market is in a consolidation phase, with traders awaiting tests of higher resistance levels. Open interest has surged, indicating increased shorting activity as investors anticipate potential price drops.

Post-Merge Performance and Expectations

Ethereum's post-Merge performance has not met the high expectations set by investors and users. The transition to proof-of-stake, while successful, has not delivered the anticipated value surge, partly due to challenging macroeconomic conditions.

Macroeconomic Impact and Federal Reserve Policy

The US Federal Reserve's announcement of a potential 75 basis point interest rate hike in November, contingent on economic conditions, has added pressure to the market. This, combined with Ethereum's current price volatility, has contributed to investor concerns.

Technical Indicators and Resistance Levels

Ethereum is currently trading between $1408.15 and $1219.29, with the Fibonacci retracement level at 61.80% support. The bull-bear power indicator shows a downward trend, indicating weakening bullish momentum. Additionally, key resistance levels at $1384.77 and moving averages are pressuring the price downward.

While the post-Merge results have been underwhelming, Ethereum's long-term outlook remains uncertain, with potential for recovery and growth once market conditions stabilize.