Why Is Ethereum (ETH) Underperforming Bitcoin (BTC) Since The Merge?

The Ethereum (ETH) price has fallen considerably since Sept. 11 but it has reached a confluence of support levels which could initiate a rebound.

After numerous delays, the Ethereum merge finally went live on Sept. 15, transforming the network to a proof-of-stake consensus. Now, previous Ethereum miners have flocked to Ethereum Classic, greatly increasing its hash rate in the process.

Additionally, it massively reduced the electricity consumption of Ethereum, in turn making it a sustainable cryptocurrency. This is expected to have long-term positive effects on the price for several reasons, one of them being that it is now more acceptable for eco-friendly investors.

However, the ETH price has been falling since the merge and has actually underperformed Bitcoin (BTC). Below, we will look at several reasons why this might have occurred. 

A potential bottom

ETH has been falling since reaching an all-time high price of $4,868 in November 2021. The downward trend has led to a long-term low of $880 in June 2022. This seemingly caused a breakdown from the $1,300 horizontal support area (red circle). 

However, the price rebounded shortly after and reclaimed the $1,300 area in the process. It could now potentially validate it as support. 

Despite this, the bullish reversal is not yet confirmed. The reason for this is that the RSI has not yet broken out from its bearish divergence trendline (green line). Until that occurs and then the indicator moves above 50, the long-term trend cannot be considered bullish.

The daily chart supports the possibility that ETH will rebound soon. There is a multitude of support confluences between $1,180 and $1,300.

This support range is created by:

$1,250 horizontal support levelSupport line of a descending parallel channelAscending support line (white)1:1 length of waves A and C

Therefore, it is very likely that the price will bounce once it reaches this level. A potential breakdown from the zone would instead suggest that a new yearly low will be reached.

ETH/BTC retraces

ETH/BTC has also been falling since Sept. 7. At the time, it had just completed a five-wave upward move. 

Since then, it is likely correcting inside an A-B-C corrective structure. Currently, ETH has bounced at the 0.5 Fib retracement support level at ₿0.067, possibly indicating that wave A is complete. 

Therefore, it is possible that the b wave will move back towards ₿0.08 prior to another drop that would complete the entire correction.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Why Is Ethereum (ETH) Underperforming Bitcoin (BTC) Since The Merge? appeared first on BeInCrypto.

Related Posts

Bitcoin price slips under $19K as official data confirms US recession

Politicians continue to argue about whether the U.S. economy is in recession, even as data highlights two consecutive quarters of negative growth. Meanwhile, BTC holds $19,000, for…

This altcoin exploded 120%, will it continue to rise in October? Analysts take

Terra Classic’s (LUNC) over 100 percent rally in September has forced analysts to look into how October could be for the cryptocurrency. The recent 1.2 percent burn…

Shiba Inu biggest position for Ethereum whales holding more than $139M – Will SHIB price explode?

Ethereum Whales double down on Shiba Inu buying despite the crypto winter encouraged by discounted prices and the Impressive growth of the Shiba Inu ecosystem driving up…

Hong Kong Protects Local Currency in Forex Market Amid Capital Flight to US Dollar

Following the Bank of England explaining that it would be meddling in U.K. bond markets and the Bank of Japan defending the yen in the foreign exchange…

Biggest Movers: SOL Moves Towards $35.00, XMR Extends Recent Gains

Solana rose for a second straight day on Thursday, as the token moved closer to its long-term resistance point of $35.00. Monero was also in the green…

Bitcoin Mining Industry Reveals Mergers, Hashrate Increases, and New Facilities Amid Market Downturn

While bitcoin is down more than 72% from the crypto asset’s all-time high, bitcoin mining operations are expanding at a rapid pace during the downturn. On Tuesday,…

Generated by Feedzy