NEW DELHI (CoinChapter.com) — Lido DAO (LDO) and Ethereum Classic (ETC), both Merge-related cryptocurrencies, have registered losses in their prices ahead of the upcoming Ethereum Merge event.
LDO’s Death Cross Fears amid Merge FOMO
Lido Finance’s native governance token, LDO, reported losses of nearly 25% since reaching a high of $2.17 on Sept 11. On Wednesday, LDO prices reached a low of $1.74 before bulls started fighting back to stage a slight recovery.
The altcoin‘s 20-day exponential moving average (20-day EMA, red wave) moved below its 200-day EMA (green wave) to form a bearish technical pattern called the death cross on Sept 14. Traders usually consider the pattern to indicate negative market sentiment.
Moreover, the 20-day EMA line moving downwards might form another death cross with LDO’s 50-day EMA (purple wave), adding to the Lido token’s bearish sentiments. Hence, LDO prices might fall to support near $1.7.
A marketwide sell-off could see prices breach below immediate support and test support near $1.53, a fall of 14.3% from current levels.
However, if the Merge attracts buyers, LDO prices would need to conquer the resistance confluence of its 20-day EMA, 100-day EMA, and 200-day EMA, near $2. Moving above the resistance confluence might help LDO price target resistance near $2.29, a jump of 28% from current prices.
Meanwhile, the relative strength index for the Lido Finance token remains neutral, with a value of 43.01 on the daily charts. The RSI trendline is moving downwards towards the oversold region.
At writing, LDOUSD was trading at $1.78 on the Gemini exchange, down 2.75% on the day.
ETC Prices Shrug Off Golden Cross
Ethereum Classic prices have not reacted positively to the upcoming Merge, with ETC prices falling over 8% intraday on Sept 13.
The token’s 100-day EMA (blue wave) moved above its 200-day EMA (green wave) on Sept 9, forming a bullish technical pattern called the Golden Cross. But, ETC failed to capitalize on the bullish cue as Ethereum Classic prices fell over 14% (high-to-low) between Sept 10 and Sept 13.
However, bulls seem to have the upper hand on Wednesday, as ETC prices reached an intraday high of $37.9 from the day’s low of $35.1, a jump of nearly 8%. If the uptrend continues, ETC prices would first target immediate resistance near $38.4.
A move above immediate resistance might propel ETC to resistance near $45, marking a gain of 21.6% from current prices.
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However, if news of the Merge fails to provide tailwinds to ETC prices, the token might fall to support from its 50-day EMA (purple wave) near $33.6. Further downside movement could see Ethereum Classic prices test support confluence of its 100-day EMA (blue wave) and 200-day EMA (green wave) near $30.
Meanwhile, the relative strength index of ETC remains neutral, clocking at 52.54 on the daily charts.
At writing, ETCUSD was trading at $36.8, up 4.25% on the day.
Why LDO And ETC Should Have Gained
Lido Finance is a liquid staking service for Ethereum (ETH), Polygon (MATIC), Solana (SOL), and other blockchain platforms. In detail, liquid staking refers to depositing one crypto asset, for example, Ether, and receiving another token in return for use elsewhere in the market.
Since stakers would replace miners post the Merge-event, people would rely on liquid staking services like Lido. Thus, in an ideal world, Lido Finance’s governance token LDO prices should have skyrocketed.
Moreover, after Ethereum’s upcoming migration to Proof-of-Stake (POS) mechanism, miners on the network will be left out of work. As a result, many users with expensive rigs will sit idle, looking for other blockchains to divert their resources.
Ethereum Classic, a hard fork born after the 2016 DAO hack, might see massive gains from the inflow of miners. However, that has not been the case. Ethereum Classic remains a Proof-of-work blockchain, and thus miners might see it as a viable option after Ethereum’s shift to the POS mechanism.
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The post Lido DAO, Ethereum Classic drop hard hours away of ‘Merge’ update appeared first on CoinChapter.
