Ethereum is struggling after the Federal Reserve announced its recent interest rate hike. A break below the daily low at $879, which has now become a support level, might confirm the bear market. As ETH sentiment deteriorates, sellers might continue to discount rebounds. Some short-term sellers might cover as the relative strength index (RSI) dips into the oversold zone. The index, however, could be vulnerable to a new round of selling unless the bull’s side can boost offers above $1,000. The price of ETH/USD fell by nearly 35% over the past week, and its capitalization decreased to $119.24 billion. At the time of this post, the No. 2 cryptocurrency trades at $993. The Ethereum network is expected to undergo a scheduled network upgrade. On Wednesday, June 29, 2022, the Ethereum network will undergo a scheduled network upgrade at block number 15,050,000. Due to the size of the block, this timing is theoretical and could occur sooner or later. The Gray Glacier network upgrade modifies the difficulty bomb’s parameters, putting it back 700,000 blocks, or about 100 days.
Key Levels
Resistance Levels: $1,500, $1,200, $1,000
Support Levels: $800, $500, $300
ETH/USD Daily ChartOn a daily time frame, the ETH/USD appears fragile, and consolidation below $1,000 could set the stage for more losses. Deviation from levels over $1,200, which marks the upper limit of a declining range, might pick up speed. The $800 low level might be approached if the daily exit stays under the moving average (MA 50) in coming sessions.
If the pair returns to rising over the indicated resistance level, it will be exposed to levels above $2,000. Although the end-of-week session is attempting to consolidate progress, ETH/USD has been under pressure below the level of $1,000 while trading beneath 5 and 13 (moving average). The pair spent the day hovering just over the $800 level.
ETH/USD 4-Hour ChartThe ETH/USD is still trading in a range below $1,000, and the intraday sentiment is within the uncharted zone. The breakout of the $800 low level, on the other hand, might validate the scenario in which the decline from the April 3rd high at the $3,581 level continues towards the $500 level.
A fresh rebound from the $800 region might lead to a retest of the $1,500 level and a break into the $2,000 confluence region. A break of the $1,000 support turned resistance level, on the other hand, might reverse the downtrend initially and lead to another round of drop as traders sell on rallies.
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