In a latest video on his YouTube channel, DataDash presenter Nicholas Merten has pointed out that macro conditions could affect the price of Ethereum and overshadow the next merger towards “Proof of Participation or PoS” according to Daily Hodl.
“The Federal Reserve, as we saw through the latest meeting minutes, regardless of The Merge of Ethereum and all these great technological innovations, the outlook for monetary policy is mixed, and that is not what the market was looking for. You can clearly see that reflected in share prices over the last few days since that meeting on Wednesday. Since the 17th, we have been slowly moving down with bearish momentum building,” Merten noted.
With the macro backdrop a headwind for crypto markets, Merten says that both Ethereum and Bitcoin are now showing signs of waning momentum.
“While Ethereum has been quite strong, it has started to look depleted in recent weeks. And Bitcoin, which really should lead the pack as the largest cryptocurrency in a generally risk-free environment…but it didn’t. He was showing incredible signs of weakness. Every time the price of Bitcoin went up, it would be followed by about six to seven days of slow red candles,” Merten added.
Merten also highlights that Ethereum over its Bitcoin pair (ETH/BTC) also seems overextended since its recovery of more than 50% in about two months.
“ETH/BTC ratio, we talked the other day that that started to look exhausted. It is getting closer to the previous range where we started to set temporary highs in price. And now, with the daily candle we have here, it seems like one more confirmation”, concluded Merten.
Ethereum is trading at $1,600 in the early hours of this Tuesday and the 60-period moving average is below the last candle.