Will ETH Relief Rally Revert From $1300?

The eleven consecutive red candles on a weekly time frame chart reflected a dramatic fall in Ethereum (ETH) prices. Furthermore, the coin price tested the combined support of $1000 and 0.786 Fibonacci retracement, which broke the losing streak with this week’s green candle. However, the buyers’ struggle to reclaim the near resistance of $1300 suggests the bears are still in charge.

Key points: 

• The ETH chart shows the first weekly green candle after eleven red ones.
• The coin faces selling pressure near the $1300 resistance.
• The intraday trading volume in Ethereum is $12.3 Billion, indicating an 11% loss.

Source- Tradingview

The June second-and-third week sell-off extended the prevailing downtrend to a low of $896.11. However, the ETH price managed the weekly candle closing above the $1000 mark, indicating the buyers are defending this psychological level.

Furthermore, the ETH price showcased a relief rally to the immediate resistance of $1250 despite a quite volatile week. However, the altcoin is down 1% today and shows long-work rejection at the mentioned resistance.

This rejection suggests exhaustion of the bullish attempts to drive the ETH/USDT pair higher. The sustained selling pressure could plummet the coin price by 15% and retest the $1000 mark.

If this theory turns out to be true, then it is still early to say the ETH price has bottomed at $1000 as the fallout possibility remains on the cards. Thus, more data is required to validate the altcoin’s sustainability above this support.

Conversely, the $1300 breakout could extend the recovery to $1571.

Technical indicator-

The Bollinger Band indicator’s midline aligned with $1300 accentuates the reversal possibility. The ETH  price trading below this neutral line indicates the bears maintain an upper hand.

However, the vortex indicator’s VI+ and VI- lines nearing each other indicate a loss of bearish momentum. This suggests the buyers could manage to defend the $1000 support.

• Resistance level- $1300, and $1424
• Support level- $1000 and $880