The Merge has been a mini-disaster. It brought the whole market down and created a very concerning situation around not only Ethereum, but many other Proof-of-Stake networks like Cardano and Algorand which, as many speculated, enjoyed some activity simply due to being direct competitors of the number-two cryptocurrency network in the world.

The price of ETH dropped to $1219 at some point after the merge. Many analysts started talking about the worst-case scenario, but it seems that there is a ray of light at the end of the tunnel due to the rapid recovery of the asset during the last three days.

ETH gained 7.3% over just a week

It is easy to pile on this asset and talk about how it is doomed to fall due to various external pressures and disagreements between users. However, the market seems to be recovering, at least, at the moment. ETH managed to climb back to the $1.3K support line and gained 7.3% compared to its dip on September 21 when it hit $1219.

While it is not a good idea to base any predictions on data extracted by using technical analysis without any additional sources of insight, we have to say that the current situation seems to be favorable for Ethereum. The flagship token of the network is on its way to a $1330 low on October 1 indicating a very strong possibility of stabilization and a slow climb.

The market is not against a new Bullish trend

The bulls have been acting passively on ETH. There are many uncertainties around this asset. The constant pressure from competitors like Cardano and Algorand, attacks from the SEC, the indecisiveness of the community on what to do with reversible transactions, and the underwhelming reception of the merger made many investors weary and cautious.

It looks like Ethereum needs some breathing room and a moment to catch a break. A short period of low volatility will give the Bulls enough confidence to try and push for new heights. It is unlikely that ETH will return to its August price, but it will likely stabilize during the next week.