Bearish Reversal Propels Ethereum Near $1000 Mark

On July 8th, a long wick rejection candle at $1250 resistance indicated the sellers continue to defend the level with vigor. The resulting reversal may trigger a new bear cycle within the range-bound rally, suggesting the Ethereum(ETH) price may retest the $1000 support

Key points: 

• The ETH chart showcased a fakeout from the 20-day EMA
• The coin price may drop 13% before testing the next significant support of $1000
• The intraday trading volume in Ethereum is $13.7 Billion, indicating a 9.73% loss

Source- Tradingview

For nearly a month, the ETH/USDT pair has been wavering in a definite range, extending from $1250-to-$1000. Furthermore, the several retests to these barriers indicate aggressive buying and selling on respective ends, reflecting uncertainty among market participants.

The last reversal from $1000 support on June 30th drove the ETH price 29% up to $1250. However, another failed attempt from buyers to surpass this resistance indicates a potential reversal and continuation of the range-bound rally.

Thus, the ETH price tumbled 11% in the last four days, currently trading at the $1140 mark. Moreover, if the selling pressure persists, the altcoin may slump more 13% before hitting the $1000 psychological mark.

However, the range set-up is usually a resting period before the coin price initiates its next directional rally. Thus, a bullish breakout $1250 resistance may pump the ETH price 10% higher to $1400.

Conversely, the $1000 fallout would sink the altcoin price 11% down to the June low of $896.11

Technical indicator-

Bollinger band indicator: the indicator has aligned its bands with the range barriers, providing an extra weightage to them. Thus, a breakout from either of the levels gives additional confirmation for respective market participants.

RSI: while the ETH price action walks a lateral path, the daily-RSI slope forms new higher highs indicating growth in underlying bullish momentum. This divergence supports the bullish theory mentioned above.

• Resistance level- $1300, and $1424
• Support level- $1000 and $880

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.