Ethereum was below the $1700 demand area in June. The king of altcoins did not plan to rebound. For the last month, the $1000 support band has held while the $1300 resistance is still not broken.
Ethereum Prices from $1,000 to $1200
Ethereum did not seem to set a range. It was most likely copying Bitcoin. Also, the king currency established a range. It would have to be persistent in its efforts to move markets without experiencing great losses.
The USD/ETH rate hovers at $1k Source: TradingView
Two primary ascending lines have marked the weekly timescale since Ethereum first started trading on Binance, in 2015. The yellow and white lines served as support, while the yellow was used as resistance. It is displayed in light blue the 200-week moving median line. This helps to highlight the significance of today’s price in comparison with earlier market valuations.
A bullish scenario would see the price rise to the MA200 (at $1200), and then bounce above the resistance zone (1300-1500) before consolidating at above $1700, breaking the white trendline.
It is however a difficult task given the uncertainty in macro-economic conditions and the possibility of a recession or a shortage of liquidity.
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If the bears are able to force the price lower than the $880-$1000 support zone, then reaching horizontal support at 500 (in green), is possible.
Volume of trades in the last month was higher than April and May, respectively. It has also been relatively stable over recent weeks. The trading volume of Ethereum was a sign that bears as well as bulls long term were keen to see where it traded. It is a psychologically important number that Ethereum buyers should defend, and $1000 could be one of the most crucial areas.
Two-year low for active addresses
According to Coin Metrics’ July 12 State of the Network newsletter, the monthly number of active addresses in the Ethereum blockchain was at their lowest since June 20, 2019.
Particularly, Ethereum addresses had more active addresses in the late 2021-early 2022 period. They reached their peak of 9 million by March 2022. Since then, it has fallen as low at 6 million, which is the lowest number in the past two years.
Source: Coin Metrics Charting Software
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.
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Featured image by Unsplash. Chart from TradingView.com