Why markets should forget about $1,000 in Ethereum and prepare for $600

Ethereum (ETH) price is frustrating traders trying to target any break below $1,000 to catch the price action and be part of a rally that will swing them back to all-time highs into next year. However, that is not how it works in trading, and certainly not in cryptocurrencies. Looking at a weekly chart, it becomes clear that the $1,000 marker does not hold any importance and either needs a bounce off $570 or a break above $1,404 before traders can start taking positions.

ETH price still holds 45% room to the downside

Ethereum price sees traders burning a lot of cash to try and trade around $1,000 to use as entry-level for a rally. Looking at the broader time frame, it pays off to have a look and discover that although it is a psychological level, it does not hold any bearing whatsoever. Instead, it's smack in the middle between either $1,404 to the upside and $570 to the downside. With bulls burning through cash, bears can easily sit on their hands and watch price action drop further in their favor.

ETH price will tank further and could easily still cover another 45% of room to the downside before a significant pivotal level gets reached at $570. The new monthly S1 support level at $647 could already be a sandbox where bears start offloading and closing their short positions. The message here is that bulls must not try to get in the way of the downward steam roller that will smash any bull out of this attempt to catch the dip instead of waiting for the bounce.

ETH/USD weekly chart

As already mentioned, bulls that want to be part of a longer-term rally will instead want to wait for a strong bullish signal to emerge. That could be delivered once price action pops above $1,404 and possibly break the red descending trend line. With that move, the room gets opened up towards $1,688 in an initial phase and next $1,928, flirting with $2,000.