NewsletterETH Price Analysis: Is Ethereum Dropping To Three Digits?
The Ethereum (ETH) chart shows a five-day losing streak which undermines last week’s recovery rally. Furthermore, the falling price potential breakdown from $1000 psychological level, indicating the sellers attempt for another leg down.
Key points:
- Sustained selling should lead ETH price to $900.
- The Bollinger Band indicator’s midline gives constant resistance to ETH price.
- The intraday trading volume in Ethereum is $12.3 Billion, indicating an 11% loss.
Source- Tradingview
A drastic fall from early May to mid-June plunged the ETH/USDT pair to a low of $896.6. Having said that, the weekly candle managed to close above the combined support of $1100 and the 0.786 Fibonacci retracement level amid the recent relief rally.
However, the recent news regarding the crypto hedge fund Three Arrows Capital plummeting into liquidation has brought significant selling pressure on the crypto market. As a result, the ETH price reverted from the $1272 mark and initiated a downward approach.
The V-top reversal plunged the altcoin by 18.3%, which currently trades at $1032. Furthermore, the five consecutive red candles in the daily chart represent aggressive selling, challenging the $1000 support.
Thus, a daily-candle closing below the $1050-$1000 support would extend the downward spiral to June low support of $900-880.
However, the safe traders can wait for a weekly candle closing below $1100 to confirm a bearish breakdown.
Technical indicator-
Since early April, the Bollinger Band indicator’s midline has acted as dynamic resistance for ETH price. Moreover, a recent reversal from the neutral slope indicates the sellers are in command.
A vortex indicator shows a bearish crossover of the VI+ and VI- lines, providing an extra edge for short-sellers. The expected spread between these lines should validate the sellers’ commitment to this downfall.
- Resistance level- $1300, and $1424
- Support level- $1000 and $880
- Zcash to Surpass XRP? Arthur Hayes Makes Bold Claim Amid ZEC’s 45% Rally
- BlackRock Bitcoin ETF’s Biggest Outflow Ever Sparks Panic, But Kiyosaki Stays Bullish
- Bitcoin Can Rebound Anytime So Long Capital Keeps Flowing In, Says CryptoQuant CEO
- Retail Investors in DAT More Likely to Lose Funds After $17B Market Wipeout: Bloomberg
- Harvard Boosts Bitcoin ETF Holdings 257% to $443M Amid Investor Withdrawals
- What the New Bitcoin Model Predicts About a Possible $200K BTC Price Target?
- Zcash Price Soars 45%: Here’s Why
- Bitcoin Price Pattern Points to a Crash to $62k as Fed Cut Odds Fall to 54%
- Zcash Price Defies Market Crash: Will Shrinking Exchange Netflows Keep ZEC Rallying?
- XRP, DOGE & ADA Price Outlook: How Low Can These Altcoins Drop Next?
- Ethereum Price Sheds 10% but Lands on the $3,150 Accumulation Base — Is a Buy-the-Dip Bounce Ahead?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
