The Merge, as many investors thought, would lead to an increase in the value of the Ethereum token as many thought Ethereum recovery was imminent. However, contrary to expectations, ETH’s price has assumed a downtrend, and investors are asking, will ETH recover? The prices have continued to dip, with ETH tokens recording a price drop to a two-month low of $1285.
The new ETH PoS token has since suffered price declines, contrary to what analysts thought. The price decline has occurred, despite the increase in the number of wallets holding the Ethereum token.
According to reports, since the successful migration from PoW to PoS, there has been over 500 new Ethereum addresses holding 1000 ETH token.
This begs the question, will the Ethereum price recover?
Can Ethereum recover following increasing demand?
The successful migration from PoW to PoS was an eagerly awaited moment in crypto and Ethereum history. Many were excited about the environmentally friendly change that could see the token gain more interest from crypto enthusiasts. As a result, several analysts stocked up on the ETH ahead of the Merge, anticipating the digital asset’s price would soar thereafter.
However, despite the success of the Merge, the Ethereum token has continued to record lower prices, trading at its lowest price of $1285 within the last two months. Many ETH holders wonder why the prices continue to dip, despite the increasing demand for the cryptocurrency, before and after the Merge.
Usually, massive changes in a crypto project are known to drive prices up after successful completion; however, the scenario has been different for ETH cryptocurrency this year. ETH price chart analysis shows that for Ethereum to recover, it may need to break past $1600 to overcome the current selling pressure.
Besides the increase in demand signaled by the increase in addresses holding ETH tokens post-merge, the ETH price chart analysis shows a relatively strong selling signal. After ETH faced rejection of around $1800, the price took a nosedive to prices below $1300, which is currently viewed as a significant support level for the token.
Despite the bearish trend, ETH will recover as the Merge happened when the bears were too strong for the bulls within the entire crypto space, affecting the price of ETH and other cryptocurrencies negatively.
How soon can Ethereum recover?
The Ethereum token is poised to recover soon, as several positive analyses show the token price will resume a bullish momentum. The increasing demand for ETH tokens is evident, and prices will soon reflect the increase in demand, making Ethereum recovery imminent.
Chart analysis shows that for ETH to resume a bullish trend, it must break through $1800; the price could rally higher following a sudden decline in selling pressure that is currently being witnessed.
The market is optimistic, and the ETH token, the second largest cryptocurrency by market cap, is expected to record price gains as soon as it breaks its resistance level.