Ethereum Price Nearing $1240 Support Breakdown; Back To $1000?

This mid-week, the Ethereum price witnessed a minor pullback after hitting local support of $1240. However, the prices struggling to breach the immediate resistance of $1330 indicates sellers are defending this level aggressively. If the selling pressure persists, the sellers will undermine this bullish pullback this coming week.

Key points: 

• The Ethereum price downfall stalls at $1240 support.
• The Ethereum Fear and Greed Index has dropped to the extreme fear sentiment of 24%
• The intraday trading volume in Ethereum is $10.5 Billion, indicating a loss of 29%. 

Source-Tradingview

Amid the increasing bearish momentum in the crypto market and the interest hike from US Fed, the Ethereum price witnessed from September third week. The downfall plunged the altcoin to $1240 local support, evaporating nearly 70% of the previous June-to-August recovery.

On September 22nd, the Ethereum price bounced back from this support for an occasional pullback; however, the prices couldn’t exceed $1330 resistance. Over the past three days, the buyers made several attempts to breach this resistance, but all ended with a closing below $1300 and a higher price rejection.

The altcoin currently trades at $1306 with an intraday loss of $0.8%. A bearish reversal from this resistance will suggest the resumption of ongoing correction. Thus, with sustained selling, the Ethereum price could tumble by 4.2% and retest the $1240 support.

With a better possibility of this support breakdown, a daily candle closing below this level will provide a selling opportunity. In that case, the altcoin could crash to $1000 psychological support, with only an $1130 barrier in its way.

On a contrary note, if the Ethereum price shows a reversal sign at $1240 support, the buyers may attempt an upswing above the $1300 mark.

Technical indicator-

Relative Strength Index: the daily-RSI slope reverted lower from the 40% mark, indicating the market sentiment supports further downfall.

EMAs: the coin price trading below the downsloping crucial EMAs(20, 50, 100, and 200) indicates an aggressive downtrend.

Ethereum intraday price levels

• Spot price: $1306
• Trend: Bearish
• Volatility: medium
• Resistance level- $1330 and $1400
• Support level- $1240 and $1130