Here’s Why The Ethereum Price Is Likely To Break $1200 Support
On October 8th, the higher price rejection at $1400 resistance level indicates the traders continue to face selling pressure. Today, the Ethereum price is down 1% and currently trades at $1338. However, this current sell-off could be aligned with the increasing possibility of another of 75 bps Fed rate hike in November.
Key points:
- The Ethereum price has been stuck in a no-trading zone since the last three weeks.
- A breakout from the range barrier will undermine the near term future for Ether
- The intraday trading volume in Ethereum is $10.3 Billion, indicating a loss of 16%.
Source-Tradingview
Following the September third week sell-off which tumbled the ETH/USDT pair to 0.786 Fibonacci retracement level, the price action started walking a lateral path. Thus, it’s been nearly three weeks since the altcoin has been resonating between the $1400 and $1250 barriers.
The decreasing volume activity throughout the consolidation phase and long-wick rejection candles on either side of the range, indicates uncertainty among market participants. However, such rectangle consolidation usually offers a directional move once the price has breached either barrier.
Thus, with a prevailing downtrend and 0.786 FIB level being a weak support level, the Ethereum price has a higher possibility to continue the downward spiral. Therefore, a breakdown below the $1250, will release the stored bearish momentum and may plunge the prices 20% down to hit the $1000 psychological level.
On a contrary note, in a less likely possibility a bullish breakout from the $1400 is possible. A daily candle closing above the $1420 mark will offer a recovery opportunity for trades with a close target of $1500.
Anyhow, the safe traders must for this range breakout before they position their funds, as the price is currently in a no-trading zone.
Technical indicator-
Bollinger band indicator: the narrow spread between the upper and lower bands reflect indecisiveness among market participants. Furthermore, a breakdown below the indicator midline will encourage a downfall to $1250.
MACD indicator: Amid consolidation, a bullish crossover between the MACD and signal line indicates the buyers are wrestling for trend control, which gives more weightage for $1400 breakout.
Ethereum intraday price levels
- Spot price: $1338
- Trend: sideways
- Volatility: high
- Resistance level- $1400 and $1520
- Support level- $1250 and $1000
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