Ethereum bottoms out as post-merger pullback continues and starts to worry

Ethereum continued to slide on Saturday as the token’s post-merger selloff intensified to start the weekend. Prices for the world’s second-largest cryptocurrency fell to their lowest level since July as bearish sentiment in the market remained elevated. Bitcoin was also down today, once again trading below $20,000.

Bitcoin

Bitcoin was once again trading below $20,000 as bearish sentiment on the token remained to start the weekend. BTC slid to an intraday low of $19,400.08 earlier today, which is a level that has historically been a price floor.

After encountering this support point, the bulls re-entered the market and attempted, with brief success, to take prices to a high of $20,021.74.

BTC – Daily Chart

Due to the high level of volatility, prices have since moved away from these highs, with a decline of 1.5%. BTC is currently trading at $19,854.17.

On the chart, the 14-day Relative Strength Index (RSI) continues to approach a low of 41.10. Some do not expect significant bitcoin moves until the index moves away from this point, and begins to climb towards a ceiling at the 50.00 level.

Ethereum

It’s been a turbulent week for Ethereum as pre-merger and post-merger volatility sent prices crashing over $300. ETH started the week trading at a high of $1,783, but fell to a low of $1,415.58 earlier today.

The move saw Ethereum fall below its support point of $1,430, hitting its lowest point since July 26 in the process.

Bitcoin and Ethereum Technical Analysis: ETH nears 2-month low as post-merger pullback continues.
ETH – Daily Chart

As can be seen from the chart, the decline came as the RSI touched clean support at the 38.70 mark. This support point has stabilized prices as the earlier hemorrhage has been somewhat halted for the time being.

If this floor were broken, it is likely that the bears would look to target the $1,350 level as a potential exit point.

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