Ethereum price repeats history due to these two hurdles

Ethereum price remains subdued by not one but two significant hurdles that have prevented an ascent for the past two months. The recent rejection comes due to a confluence of two outcomes, which has pushed ETH lower and could result in a further descent.

Ethereum price is far from ready for a recovery rally

Ethereum price is stuck trading in a range, extending from $1,281 to $880 since it was first formed between Juen 18 and June 26. The range high at $1,281 has been an important level even before ETH begins its coiling up.

So far, Ethereum price has retested and failed to flip this level into a support floor thrice. The latest rejection was on July 8, which has since led to an 18% downswing. This correction has also pushed ETH below the midpoint of the said range at $1,080.

Although Ethereum price tried to recover above the midpoint, it failed, confirming a successful flip of this support level into a resistance barrier. Going forward, investors can expect the Ethereum price to break down the immediate support level at $1,041 and revisit the range low at $880.

In some cases, it might even sweep the said level to collect liquidity resting below it.

Here, one of two things could happen. If ETH only sweeps the $880 level and recovers above it quickly, then the chances of another revisit to $1,280 seem plausible. However, if Ethereum price fails to do that, there is a good chance another crash to the $660 support level is likely.

ETH/USD 4-hour chart

While things are looking up for Ethereum price, investors need to note that it needs to overcome the 200-week Simple Moving Average (SMA) at $1,209 and the 200 four-hour SMA at $1,179 to arrive at the range high at $1,281.

If ETH manages to clear these hurdles, buyers still need to flip the $1,281 hurdle into a support level. Doing this will invalidate the bearish thesis for Ethereum price.