There has been a steady rise in volume activity during the bearish phase which indicates momentum selling in the market. However, as can be seen, the tanking in Ethereum values slows down as it nears the psychological support zone of $1000. This is indicative of a measure by buyers to defend this level. So, the big question is will the ETH maintain its four figures or sink to three figures?
A rally was seen from the $1260 resistance but later it suddenly took a turn. The V top reversal and then the surging volume indicates a true fall which eroded the coin’s market value by 20.7%. Numerous lower price rejection candles are indicative of reflecting botched attempts by sellers to breach this support.
A fresh bullish momentum can provoke buyers to challenge the overhead resistance of $1260, offering a recovery opportunity for ETH holders. However, for this to happen there must be at least one significant green candle to validate the required buying pressure.
However, if sellers continue to dominate the scene and breach the bottom the resulting downfall could see Ethereum prices tanking by 12.56%to low of $880 akin to the situation in June.
Ethereum Technical Benchmarks
EMAs: the angle of the EMAs (20, 50, 100, and 200) which is acute hints at an overall downtrend in the ETH price. A Fast-moving 20-day EMA approaching the coin price may put added selling stress on traders.
ADX Benchmarks: The ADX angles remained acute amid the losing streak in Ethereum price, indicating a loss of bearish momentum.
MACD Benchmarks: Regardless of a downfall in price action the MACD indicator is exhibiting surging fast and slow lines which are indicative of growing underlying bullishness. This bullish divergence encourages a reversal from the $1000 mark.
Resistance Benchmarks – $1300, and $1424
Support Benchmarks – $1000 and $880