Can $1000 Support Undermine Selling Momentum?

A constant rise in volume activity during the bearish reversal indicates momentum selling in the market. However, the falling price stalls near the $1000 psychological support zone, exhibiting the buyer’s aims to defend this level. Can this support prevent Ethereum (ETH) price from entering the three-digit price?

Key points: 

• The ETH sellers tease a breakdown of the $1000 support.
• The rising MACD indicator slopes undermine the ongoing selling 
• The intraday trading volume in Ethereum is $8.6 Billion, indicating a 25% loss.

Source- Tradingview

The recent relief rally in ETH/USDT pair took a sudden turn from the $1260 resistance. Furthermore, the V-top reversal and rising volume indicate a genuine downfall, which depreciated the coin’s market value by 20.7%.

The downfall reached the near support zone of $1040-$1000 and witnessed a significant surge in demand pressure. The several lower price rejection candles at this level reflect failed attempts by sellers to breach this support.

Thus, the replenished bullish momentum could bolster buyers to rechallenge the overhead resistance of $1260, offering a recovery opportunity for ETH holders.

However, this bullish theory needs at least one significant green candle to validate the required buying pressure.

If the sellers continue to influence the traders to breach the bottom support, the resulting downfall may plunge the ETH price 12.56% lower to the June low of $880.

Technical indicator-

EMAs: The downsloping EMAs(20, 50, 100, and 200) project an overall downtrend in the ETH price. Moreover, the fast-moving 20-day EMA nearing the coin price may put additional selling pressure on traders.

ADX indicator: the ADX slopes didn’t rise amid the losing streak in ETH price, indicating a loss of bearish momentum.

MACD indicator: Despite a considerable downfall in price action, the MACD indicator shows rising fast and slow lines, indicating the growing underlying bullishness. This bullish divergence encourages a reversal from the $1000 mark.

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