Ethereum moved to a three-week low on Friday, as market sentiment remained bearish following the completion of The Merge. The world’s second largest cryptocurrency dropped below $1,500 today, less than 24 hours after the historic migration from proof-of-work (PoW), to a proof-of-stake (PoS) system. Bitcoin also neared a multi-week low.
Bitcoin
Bitcoin (BTC) fell further below $20,000 on Friday, ahead of next week’s expected interest rate hike by the U.S. Federal Reserve.
BTC/USD dropped to an intraday low of $19,625.22 in today’s session, taking prices closer to a support of $19,300.
Crypto markets have been turbulent for the majority of the week, following disappointing U.S. inflation data.
BTC/USD – Daily Chart
The decline comes less than a day after the world’s most valuable token traded at a peak of $20,370.00.
Looking at the chart, this recent drop for bitcoin comes as the token hit a floor within its 14-day relative strength index (RSI).
The index is now tracking at 43.48, with a move towards a resistance of 46.00 the next likely move. Should this happen, we could see BTC once again trading above $20,000.
Ethereum
Ethereum (ETH) was once again in the red in today’s session, as the token dropped to a two-week low.
Following a peak of $1,594.54 during yesterday’s session, ETH/USD fell to a bottom of $1,451.56 earlier today.
The move saw ethereum approach, but not collide with, a key support point of $1,430, as bulls reentered to push prices higher.
ETH/USD – Daily Chart
As of writing, the world’s second largest cryptocurrency continues to trade close to today’s bottom, which was its lowest point since August 29.
Many still believe a reversal could come, once this current red wave subsides, with the first target for bulls likely the recapture of the $1,500 region.
Next week’s Federal Open Market Committee (FOMC) meeting will likely be a key test for prices, with the potential for a 100-basis point hike on the table. As such, many remain uncertain on how this will impact market confidence.
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Will ethereum continue to trade lower over the coming weekend? Leave your thoughts in the comments below.
Eliman Dambell
Image Credits: Shutterstock, Pixabay, Wiki Commons
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