September Dump: Ethereum May Close With Losses Exceeding 14%

Ethereum may end the month with losses exceeding 14%. This is the biggest loss it has seen in the last three months. Nonetheless, it saw more trends but soon dropped as selling pressure mounts.

Trading action during the past four weeks showed massive volatility. Nonetheless, there were massive fundamentals during this 30-day period. One such is the highly anticipated merge.

It took place on the 15th and many expected that this may result in massive uptrends. Unfortunately, price continued maintain its normal uptrend and soon dipped.

The United States SEC countered that the move may attract legal issues. Arthur Hayes also added that PoW may not get the desired audience and termed it “free money”.

Additionally, the fundamental failed to have any effect on price. Before the merge, ETH saw little price increase. However, this changed during after the announcement as we observed that it retraced by a big margin.

A closer look at the candle showed that ether opened trading at $1,639 but ended  the intraday session at $1,457. Both prices indicate a more than 10% drop in price.

It is safe to conclude that the most recent bearish round started before the merge but gained more ground after it. Nonetheless, several event took place during the 30-day period.

Ethereum Maintained $1,200 Support

The largest alt by market cap saw notable drops during September. One of the biggest was three days after the merge. We observed that it dropped from a open at $1,468 to a close at $1,334.

The massive decrease resulted in a more than 9% deficit. Following that decrease, another took place that saw the coin lose more than 5%. Nonetheless, after this effect, trading actions were mostly stable.

A closer look at chart further expresses this statement. We noticed the way the price actions remained above $1,200 following several attempts push prices below it. Nonetheless, indicators are telling a different story.

For example, we observed that the Relative Strength Index retraced to a low of 32. This raised concerns that the apex altcoin may become oversold. However, this never happened as the bulls rallied the market.

This led to a rebound in both price and RSI. A closer look at the 50/200 day Moving Average paints another picture of what transpired over the last 30 days. The 50-day MA only came under test and flipped once during the first half of the month.

A lot took place with regard the Moving Average Convergence. A closer at the chart reveals that the indicator had a bullish divergence on September 7. ETH saw notable price change in response but it was short-lived as bearish convergence followed.

After the trend reversal, the coin failed to recover and only ranged. However,  a few days ago, the 12-day EMA intercepted the 26-day from below. Unfortunately, the effect was minimal and there was notable increase in price.

Based on the Pivot Point Standard, ether ranging may continue for longer or there may be a big drop. One reason for this conclusion is that the altcoin ended the month edging closer to retesting it first pivot support.

Third Quarter Ends With 18% Increase

Aside the fact that ether lost more than 14% during the last days, it performed better on the quarterly assessment. The main reason for this is a splendid kickoff to the 3-month period. July was the most bullish.

On the first week of the seventh month, ETH reclaimed the $1, 200 support after losing it more than seven days ago. It ended that period with gains of more than 8%. This increase set the bullish tune for the rest of the 30-day session.

Affirming this claim, we observed another massive surge during the next intraweek session. Although it lost the the $1200 level again, it rebounded and retested $1,400 for the first time in more than three weeks.

It closed the session around $1,300 and with a price change of 14%. The bulls exerted more effort during the third week as ether recorded its biggest gain yet. It peaked above $1,600 for the first time in more than a month.

It ended the week with gains exceeding 19%. Another retaliation by the bears the next intraweek session. Nonetheless, it barely made any dent the coin overall performance. On the monthly chart, it ends July with a positive change of 56%.

A change in market sentiment happened in August as ETH spiraled down. However, before the downtrend. The altcoin tested and briefly flipped the $2,000 resistance. This moved sparked hope in many.

Unfortunately, the hope was short-lived as the succumbed to massive selling pressure that ensured drop below its opening price. In the end, ether lost 7%.

MACD showed that the asset had a bullish divergence on the weekly chart. As at the end of the third quarter, we observed the same momentum. However, the gap between both EMAs are closing. Let’s see how this will affect price in the next quarter.