Early indications of the potential stabilization of the ETH price suggest that the Bulls are in firm control and can start moving the price up. The market is stabilizing and ETH has been gaining new ground by the end of each trading day. It is still quite volatile, but it is nothing compared to the first week following the merge. Now, it is tamer and has a clear path forward if nothing disastrous happens during the next week.
The crypto market is full of surprises
One of the problems with analyzing the crypto industry is that it is simply way too complicated with hundreds of developments potentially affecting the market on any given day. The merger could have gone in manifold ways and created a sticky situation for the whole industry. However, Ethereum carried on without any hiccups.
While the successful implementation of the PoS model should have given more power to the bulls, the opposite happened on the day of the merge with ETH losing about 12% of its value within six hours. It could be a result of a huge selloff that many people saw coming with many reports about whales moving their ETH stacks to crypto exchanges.
Now, the price seemed to be following the retracement path. After hitting its new low on September 21, ETH climbed up by 7.3% on September 30 and prepared to gain new ground by solidifying its position above the $1300 support line. If you extrapolated the line just four days further, you would see that the asset is moving confidently to the new $1400 support level to fortify a new defensible position for bulls.
Ethereum is not done just yet
While many pundits and analysts started talking about the soon end of Ethereum’s dominance in the market due to external pressures, the asset certainly has strong legs and fundamentals. Politicians are saying that Bitcoin is too big to fall, but the same can be applied to Ethereum. The network hosts multiple popular DeFi platforms and provides utility to the whole crypto industry meaning that the number of people believing in its future will always be high enough to keep it running.