Two Reasons why Ethereum Dumped

7 Eyl 2022

As predicted, Ethereum collapsed from $1653. This happened for two reasons that discussed yesterday: We noted that this was highly likely as it was a primarily retail driven rally from hype off 'the merge'. Also, $1653 is the first of a cluster of resistance levels extending into the $1700's. It will require sufficient momentum to break through these. The Kovach OBV has sharply fallen to confirm the selloff. We have broken through our next support level at $1547, but are still well above $1424, which is likely a floor for now. If we rally, $1653 should still provide signficant resistance.