Ethereum about to lose $1600: Merge rally cools down?

Ethereum price analysis for August 21, 2022, comes on a bearish note for the Ether token as we can confirm that the chances of making higher highs have declined in the last 24 hours. Furthermore, it is also possible for investors to witness another price drop in the near future as well. Moreover, it is also important to note that the prices have dropped by 1.57% in the last 24 hours which confirms that there are possible chances of a continuation of the downtrend. With the Merge approaching in the near future, we might see Ether make a move towards the $2K price region.

As noted in our Ether price analysis for August 20, 2022, the Ethereum token might make an attempt to breach the $2K price level which is the nearest resistance for the cryptocurrency.

The data from CoinMarketCap shows that the trading volume of the coin dropped by 22.46% in the last 24 hours, followed by a 1.31% drop in the market cap. Moreover, the Volume / Market Cap has a value of 0.08967, while the Market Dominance dropped to 19.22%.

The daily candle for Ethereum opened at a price of $1576 and reached a daily high of $1616. On the other hand, the daily low for ETH stands at a price of $1562. The price of 1 ETH at the time of writing is $1606.

Ethereum price analysis for August 21 on the daily chart

Ethereum price analysis for August 21, 2022, will take into account the data from the daily chart below and 3 major indicators in the crypto space.

Source: TradingView

The RSI indicator reads a value below 44, which confirms that the selling pressure for Ethereum is very high.

The MACD line remains below the signal line and the bearish histogram is increasing in intensity.

The price action for Ethereum is situated at the lower end of the Bollinger Bands and a bearish breakout is possible.

Conclusion

Ethereum price analysis for August 21, 2022, ends on a bearish note for Ether with considerable chances of losing $1600.