The to and fro price swing of Ethereum which has for some time wobbling between $1275 and $1000 hints that traders are still in a state of ambiguity and trapped in uncertainty. When reports last came in ETH was changing hands at $1,213.83 up 6.44% and has brought the crypto asset to overhead resistance ($1275). However experts are hinting of a bearish reversal due to the sinking volume activity. If this becomes a reality we could see the altcoin getting back to $1000 support.
ETH Price In A Consolidation Phase
ETH/USDT pair for the past one month was a perfect example of the consolidation phase and it swung in between $1275 and $1000. The swing happened thrice and indicates aggressive buying and selling on both ends.
As the prolonged crypto winter continues such swings of values between a particular range or band is indicative of a short break period before the prevailing trend continues. It is also a perfect opportunity to make an entry.
On July 13, ETH price ballooned from the psychological support level of $1000 and the bullish trend surged its price by 18.3% in just three days and touched the $1250-$1275 supply zone.
ETH Price Could Tumble Courtesy Decreasing Volume
However there is danger lurking in the form of decreasing volume which indicates that the bullish momentum will lose steam as they values reaches the overhead resistance. This could be followed by another price correction. Experts opine that the correction phase could continue for a few more sessions. The recent gains will be eroded and the downfall back to the $1000 level will happen again.
However if the buyers are able to hold and manage to breach the overhead resistance, the ETH Price could acquire a better footing to bolster a recovery rally to $1400 resistance.