Ethereum price may drop to $1200 if the "sell the news" event plays out

Ethereum has been chipping away at Bitcoin's market share over the past few weeks as developers prepare for the Merge Update at the end of next month. Let's take a closer look at how this affects the blockchain and its users. The public believes the merger will speed up transactions, lower gas costs, triple share earnings and provide other benefits. In particular, between June 18th and August 14th, ETH increased by more than 100% after a 130% jump.

By moving to Proof of Stake, Ethereum requires 99.95% less electricity than it used before. This eliminates environmental pollution as a concern of the digital asset and keeps it off the radar of governments looking to sanction cryptocurrency mining.

ETH Price Analysis:
Since November 2021, Ethereum's price has plummeted and dropped an astounding 81%, falling from $4,868 to $880 in just 220 days. ETH has gained 130% in two months, reaching $2,031 from $880 on June 18. This may be the result of the merger announcement that shocked nearby residents a few months ago. Since then, interest in Ethereum has grown.

According to technicals, Ethereum sentiment is showing a shift from bullish to bearish as a result of the 25% drop between August 14th and August 20th. The move led to a low of $1,524, compared to the August 10 swing low of $1,656. .

This development proves that the bears are currently in charge and the current recovery bounce is just a failed bullish attempt. The next logical step is to prepare for the coming downturn and find a suitable entry to start trading small.