Here’s Why The Ethereum Price Is Likely To Break $1200 Supportadmin
Published 52 mins ago
On October 8th, the higher price rejection at $1400 resistance level indicates the traders continue to face selling pressure. Today, the Ethereum price is down 1% and currently trades at $1338. However, this current sell-off could be aligned with the increasing possibility of another of 75 bps Fed rate hike in November.
- The Ethereum price has been stuck in a no-trading zone since the last three weeks.
- A breakout from the range barrier will undermine the near term future for Ether
- The intraday trading volume in Ethereum is $10.3 Billion, indicating a loss of 16%.
Following the September third week sell-off which tumbled the ETH/USDT pair to 0.786 Fibonacci retracement level, the price action started walking a lateral path. Thus, it’s been nearly three weeks since the altcoin has been resonating between the $1400 and $1250 barriers.
The decreasing volume activity throughout the consolidation phase and long-wick rejection candles on either side of the range, indicates uncertainty among market participants. However, such rectangle consolidation usually offers a directional move once the price has breached either barrier.
Thus, with a prevailing downtrend and 0.786 FIB level being a weak support level, the Ethereum price has a higher possibility to continue the downward spiral. Therefore, a breakdown below the $1250, will release the stored bearish momentum and may plunge the prices 20% down to hit the $1000 psychological level.
On a contrary note, in a less likely possibility a bullish breakout from the $1400 is possible. A daily candle closing above the $1420 mark will offer a recovery opportunity for trades with a close target of $1500.
Anyhow, the safe traders must for this range breakout before they position their funds, as the price is currently in a no-trading zone.
Bollinger band indicator: the narrow spread between the upper and lower bands reflect indecisiveness among market participants. Furthermore, a breakdown below the indicator midline will encourage a downfall to $1250.
MACD indicator: Amid consolidation, a bullish crossover between the MACD and signal line indicates the buyers are wrestling for trend control, which gives more weightage for $1400 breakout.
Ethereum intraday price levels
- Spot price: $1338
- Trend: sideways
- Volatility: high
- Resistance level- $1400 and $1520
- Support level- $1250 and $1000
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.