Published June 19, 2022
June’s second week-sell off plunged the ETH/USDT pair to a low of $896.1. However, the high demand pressure prevented a daily candle from closing below the $1000 support, resulting in long-tail rejection. Nevertheless, if buyers could sustain above the psychological support, the price may witness a minor relief rally.
From Mid-April to June, the Ethereum(ETH) price slowed its downfall as the broader market witnessed uncertainty among the market participants. Furthermore, The buyers were trying to sustain the price above $1700, which resulted in a minor consolidation.
However, submitting to the last week’s crypto crash, the ETH breached $1700 support on June 10th. The post-retest fall tumbled the altcoin by 41% and sank it to $1000 psychological support. On June 18th, the sellers tried to break this crucial support, but despite being backed by high volume, the daily candlestick reverted with a long-lower price rejection.
Today with another failed attempt to sustain below the $1000, the ETH price is up 4.5%. Thus, this psychological support indicates high demand pressure and could trigger a minor relief rally.
The replenished bullish momentum may drive a bullish pullback to $1400 or $1700.
Alternatively, the daily candlestick closing below the $1000 support would invalidate the bullish theory.
The Onchain GIOM metric indicates that 50.3% of Ethereum addresses are witnessing losses while 48.68% of addresses are in profit. This decreases the potential of investors holding their coins amid the bear market.
Moreover, the nearest green cluster suggests the $619 average as a potential demand zone. On the flip side, the two red cluster projects $1163 and $1750 as supply regions.
Relative Strength Index- The daily-RSI slope wavering in the oversold region encourages the recovery theory.
EMAs- The fast-moving 20-day EMA has provided constant resistance to ETH prices since April. A potential recovery needs to surpass this dynamic resistance to carry a genuine rally
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