If Ethereum Falls Below $1,000, Here’s The Next Support
July 12 2022 - 6:27PM
NEWSBTC
Early in June, Ethereum fell below the $1700 demand zone, and the
king of altcoins had no immediate plans to recover. The $1000 band
of support has been held for the past month, while the $1300
resistance has not yet been broken. Ethereum Ranging Between $1,000
to $1,200 Although Ethereum seemed to establish a range, it was
probably just imitating Bitcoin. The king coin also established a
range, and it would need perseverance to traverse the markets
without suffering a great deal of loss. ETH/USD hovers
around $1k. Source: TradingView Since Ethereum initially began
trading on Binance in 2015, there have been two primary ascending
lines on the weekly timescale. Prior to the price falling below
$1,500, the white line served as support and the yellow line served
as resistance. To further emphasize the relevance of the present
price in relation to earlier market valuations, the 200-week moving
average line (in light blue) is also shown. In a scenario where
price moves in favor of the bulls, the price would rise over the
MA200, which is located at $1200, and then rebound above the
resistance zone between $1300 and $1500 before consolidating above
$1700 and breaking the white trendline. However, it appears to be a
challenging mission given the uncertainties in the macro picture
brought on by the potential for a recession and a lack of
liquidity. Related reading | Uniswap Reports Phishing Scam, As UNI
Records 10% Profit In 7 days On the other hand, reaching the
horizontal support at $500 (in green) will not be out of the
question if the bears can force the price below the support zone at
$880-$1000. The volume of trades for the past month has been higher
than either April or May on their own, and it has been fairly
stable in recent weeks. This demonstrated that long-term bulls and
bears were interested in where ETH was trading. $1000 would be a
crucial area for Ethereum buyers to defend because it has
psychological significance as well. Active Addresses Hit 2-year Low
According to the July 12 State of the Network newsletter from Coin
Metrics, the quantity of monthly unique active addresses on the
Ethereum blockchain has fallen to its lowest level since June 20,
2020. The number of active Ethereum addresses specifically
increased in late 2021 and early 2022, peaking at roughly 9 million
in late March 2022. The number has since fallen to as low as 6
million, the lowest level in the previous two years. Source: Coin
Metrics Charting Tool When Ethereum’s total number of unique active
addresses per month surpassed 13 million in May 2021, the
second-largest cryptocurrency by value’s price skyrocketed to a
record-breaking high of nearly $4,000. Related reading | TA:
Ethereum Breakdown Looks like the Real Deal, $1K Is The Key
Featured image from Unsplash, chart from TradingView.com
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