Ethereum and the majority of cryptocurrencies continued their rebound this week as they swiftly made up lost ground thanks to a minor improvement in market mood. ETH/USD crashed to $879 on June 18. However, the second cryptocurrency by market capitalization has regained the important psychological milestone of $1,000, although this recovery is unrelated to any constructive fundamental changes in the altcoin sector. The price of ETH managed to rise above the $1,200 level during the week to challenge the upside barrier near $1,280. ETH/USD is still below the daily moving average (MA 200), which is effectively keeping the bear market cycle active. Data from Coinglass suggests Ethereum option traders are less bearish than they were previously, and recently, some investors went extremely long on 491,000 ETH on margin-based markets. Market makers may start to think that the worst of the bear market is over since these whales and market makers are confident that $880 on June 18 was the ultimate bottom. This data demonstrates that these traders do not anticipate a devastating price move below $900.
Key Levels
Resistance Levels: $1,700, $1,500, $1,300
Support Levels: $1,000, $800, $500
ETH/USD Daily ChartAmid recent rising signals, the bearish bias in ETH/USD looks to have eased around $879, and the pair is presently floating higher. After the pair maintained stability over the $1,000 horizontal support, the general mood remained positive. In the next trading sessions, sellers might attempt to cover their positions if the price goes above $1,300.
Additionally, the relative strength index’s (RSI) mid-position may momentarily halt the downward trend. The bulls may want to consolidate over $1,200 once the dust has settled before making one last breakout effort over $1,300. A protracted rally above $1,500 might be sparked by a closure above $1,300, which would pave the way for a medium-term bullish reversal.
ETH/USD 4-Hour ChartThe ETH/USD price recovered faster as it breached the $1,200 zone. The near-term projected level of $1,300 might offer some firm resistance. To confirm a short-term bottoming, the 4-hour moving average (MA 50) must be broken at the $1,300-$1,500 minor resistance level.
On the other hand, a further attempt to fall from $1,280 to $1,150 4-hour moving average (MA 50) zone is anticipated, with the following projection goal being at $1,000. Near-term resistance at $1,280 may disrupt the intraday bias’ neutrality and cause the price to continue falling before beginning to rise.
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