Share:
  • Ethereum price has breached a stable support level at $1,080, after exhausting its uptrend.
  • A breakdown of the $1,041 support level is likely to trigger a 15% downswing to $880.
  • The bearish thesis will face invalidation if ETH manages to flip the $1,281 hurdle into a support level.

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

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.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.

More Cardano News

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.

More Bitcoin News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari. 

More Solana News

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders. 

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP