- Ethereum price has more room for a decline, analysts expect a V-shaped recovery in ETH.
- Justin Bennett believes the Ethereum price rally will likely end soon, ETH could decline to $1,250 in the short term.
- Ethereum rally is likely to fail, as hard fork narratives gain traction ahead of the scheduled Merge.
Ahead of the FOMC meeting scheduled for today, Ethereum price remains unchanged. The largest altcoin yielded 11.4% gains over the past week, as the tentative date for the Merge was announced. As developers prepare for the transition to proof-of-stake, a hard fork narrative is doing rounds.
Chandler Guo and Ethereum miners, proponents of ETH proof-of-work (PoW) argue that a hard fork is imminent. Moreover, exchanges like Poloniex, BitMEX have announced support for ETH PoW.
As narratives surrounding Ethereum Merge become popular among ETH holders, there is an increase in uncertainty. Proponents expected a bullish sentiment among ETH holders, however, the altcoin is poised for a correction.
Justin Bennett, YouTuber and crypto proponent believes $1,860 is a key level for Ethereum price. If ETH declines below this level, it is likely to suffer a decline. In his latest YouTube video, Bennett explains why Ethereum’s price rally could fail.
$1,860 is a must-hold level for $ETH.
Close below that, and things could get ugly for #crypto.#Ethereum pic.twitter.com/wIrsTVK3MP
— Justin Bennett (@JustinBennettFX) August 16, 2022
Bennett explains that $1,600 has emerged as a pivot for Ethereum over the last few weeks. A decline below $1,600 could confirm a trend reversal in Ethereum and brings $1,250 into play.
Ethereum’s weekly low is $1,651 and that is a key level to watch out for in ETH. In the maximum pain scenario, the Ethereum price could sweep the monthly low of $1,003.
If Ethereum’s price recovers from the downtrend and touches its weekly high of $2,029, the bearish thesis will get invalidated. Ethereum price could climb consistently ahead of the transition to Proof-of-Stake (PoS).
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CE. No information in this article should be interpreted as investment advice. CE encourages all users to do their own research before investing in cryptocurrencies.
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