The broader cryptocurrency market has erased the gains it accumulated earlier this week.
The cryptocurrency market is trading in the red zone for the first time this week. The prices of most coins and tokens and down by more than 2% over the last 24 hours.
The total cryptocurrency market cap currently stands below $1.1 trillion after the market lost nearly 4% of its value in the last 24 hours.
Bitcoin, the world’s leading cryptocurrency, has lost more than 3% of its value so far today and has dropped below the $23k resistance level.
Ether remains the second-largest cryptocurrency by market cap, and suffered a huge loss over the last 24 hours. ETH is down by nearly 6% today and currently trades above $1,600 per coin.
The Ethereum bulls would be forced to defend the $1,500 support level over the coming hours as the ecosystem continues to get ready for the Merge.
Key levels to watch
The ETH/USD 4-hour chart is currently neutral despite Ether recording huge losses over the last 24 hours. The technical indicators show that ETH could soon enter the bearish zone if the current momentum is maintained.
The MACD line is around the neutral zone after spending most of the week in the positive region. Further bearish movement could see the MACD line enter the negative territory.
The 14-day relative strength index of 47 shows that ETH could enter the oversold region if the bears remain in charge.
At press time, ETH is trading at $1,697 per coin. If the bearish run continues, ETH could drop below the $1,596 support level before the end of the day. However, ETH should maintain its price above the $1,500 support level in the short term.
The bulls might regain control of the market and push ETH towards the $1,771 resistance level over the coming hours or days. Ahead of the Merge, ETH could look to rally towards the $2,000 psychological level in the near term.