ETHUSD has been trending downwards since mid-August when the price failed to surpass the 2,030 mark. Even though Ethereum experienced an acceleration of its decline following the successful completion of the Merge two weeks ago, it has been trading sideways in the last few daily sessions.
The momentum indicators currently suggest that the negative forces are waning but continue to hold the upper hand. Specifically, the MACD histogram is found above its red signal line but in the negative territory, while the stochastic oscillator is ascending after posting a bullish cross in the oversold area.
Should buying interest intensify, the digital coin could gain some ground and test 1,400, which is the upper limit of its recent rangebound pattern. Piercing this threshold, the price could ascend towards the recent peak of 1,800 before the spotlight turns to the trend reversal point of 2,030. Even higher, the previous support of 2,450 could act as the next resistance zone.
Alternatively, should selling pressures persist, the price could decline towards its recent low of 1,220. If that floor collapses, the spotlight may turn to the crucial 1,000 psychological mark. A decline below the latter may trigger a retreat towards the 2022 low of 880.
In brief, ETHUSD appears to be in a consolidation mode, waiting for developments that could provide fresh directional impetus. That being said, a break above or below its tight range is likely to be followed by a significant move towards the same direction.