If Ethereum Falls Below $1,000, Here’s The Next Support

In early June, Ethereum fell below the $1,700 demand area, and the king of altcoins had no immediate plans for a recovery. The $1,000 support range has been held in hold for the past month, while the $1,300 resistance has yet to be broken.

Ethereum price ranges between $1,000 and $1,200

Although Ethereum appears to be establishing a range, it may have been just an imitation of Bitcoin. Coin King has also created a range, and you will need perseverance to traverse the markets without suffering a huge loss.

ETH/USD hovers around $1k. Source: TradingView

Since Ethereum initially started trading on Binance in 2015, there have been two primary bullish streaks on the weekly time scale. Before the price dropped below $1,500, the white line acted as support and the yellow line as resistance. To further confirm the importance of the current price in relation to previous market assessments, the 200-week moving average line (in light blue) is also shown.

In a scenario where the price moves in favor of the bulls, the price will rise above the MA200, which is located at $1,200, then rebound above the $1,300-1,500 resistance zone before consolidating above $1,700 and breaking the white trend line.

However, it appears to be a challenging task given the uncertainties in the macro picture caused by the potential for recession and liquidity shortfalls.

Related reading | Uniswap reports a phishing scam, UNI records 10% profit in 7 days

On the other hand, reaching the horizontal support at $500 (in green) would not be out of the question if the bears could force the price below the $880-$1,000 support area.

Last month’s trading volume was higher than either April or May alone, and has been fairly stable in recent weeks. This showed that long-term bulls and bears were interested in where to trade ETH. $1,000 will be a crucial area for Ethereum buyers to defend as it has psychological significance as well.

Active titles hit a two-year low

According to the July 12 State of the Network newsletter from Coin Metrics, the amount of unique monthly active addresses on the Ethereum blockchain has fallen to its lowest level since June 20, 2020.

The number of active Ethereum addresses specifically increased in late 2021 and early 2022, peaking at around 9 million in late March 2022. The number has since fallen to 6 million, the lowest level in the past two years.raised

Source: Coin Metrics Charting Tool

When the total number of unique active Ethereum addresses per month exceeded 13 million in May 2021, the second largest cryptocurrency by value price surged to a record high of nearly $4,000.

Related reading | TA: Ethereum crash looks like the real deal, $1K is the key

Featured image from Unsplash, chart from TradingView.com

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