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The ETHUSD is Decline may Continue

8/2/2022 3:46 PM

This week, the ETH/USD pair is correcting downwards, losing the positions won last week, against the background of a possible slowdown in the pace of monetary policy tightening in the USA and the expectation of an early transition of the Ethereum network to the PoS proof algorithm.

Experts note that there is "fatigue" in the market from the constant news about the approaching merger of the Ethereum 1.0 and Ethereum 2.0 networks. Most investors have already put money in the purchase of ETH and are now waiting for an immediate update, which is scheduled for mid-September. Up to this point, observers do not rule out the continuation of the pair's decline or its consolidation.

In addition, the overall pressure on the market is exerted by monetary factors. Despite the possibility of reducing the pace of interest rate hikes, which was mentioned last week by the head of the US Fed Jerome Powell, the regulator will not give up tightening monetary policy to combat inflation and will spend it for a considerable time, strengthening the position of the US currency in relation to competitors.  

The price has corrected to the area of 1570.00, but for further serious decline it will need to consolidate below the strong support level of 1500.00 (Murray [4/8], the middle line of the Bollinger Bands, Fibo retracement 23.6%). In this case, the reduction targets will be 1375.00 (Murray [3/8]), 1250.00 (Murray [2/8]). The key for the "bulls" remains the level of 1750.00 (Murray [6/8]), the breakout of which will give the prospect of resuming growth to the levels of 1875.00 (Murray [7/8], Fibo retracement 38.2%), 2000.00 (Murray [8/8]), 2125.00 (Murray [+1/8]). Technical indicators do not give a single signal: the Bollinger Bands are directed upwards, but the Stochastic has reversed downwards, and the MACD histogram is stable in the positive zone.

Resistance levels: 1750.00, 1875.00, 2000.00, 2125.00. | Support levels: 1500.00, 1375.00, 1250.00.

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