- Ethereum continues to push lower on the last day of the week.
- $1,200 could be seen as the next target on the downside ahead of $1,100.
- Bears are likely to continue to dominate ETH unless it manages to reclaim $1,500.
Ethereum traded in a relatively tight range on Saturday and closed the day in the positive territory but came in under strong selling pressure on Sunday. As of writing, ETH was trading at $1,356, losing 7% and 28% on a daily and weekly basis, respectively.
Near-term bearish outlook remains intact
On the daily chart, the Relative Strength Index (RSI) indicator still floats above 30, suggesting that there is more room on the downside before Ethereum becomes technically oversold. Additionally, ETH closed the third straight day below the 50-day SMA on Saturday.
The next target on the downside is located at $1,200 (Fibonacci 61.8% retracement of Jan.2 - Feb. 20 uptrend). Below that level, $1,100 (100-day SMA) and $1,000 (psychological level) align as next key support levels. On the other hand, unless ETH manages to make a daily close above $1,500 (Fibonacci 38.2% retracement, 50-day SMA), bears are likely to remain in control of the price. Beyond that hurdle, $1,680 (Fibonacci 23.6% retracement) aligns as the next resistance.
ETH/USD one-day chart
IntoTheBlock's In/Out of the Money Around Price (IOMAP) model reaffirms the significance of $1,500 as a key resistance with investors having bought more than 8 million ETH around that price. On the flip side, several medium-strength supports could be seen ahead of $1,200.
Ethereum IOMAP chart
Ethereum continues to trade below the key $1,500 area and the near-term technical outlook alongside the on-chain metrics suggests that the selling pressure is likely to remain intact. $1,200 could be seen as the next target on the downside ahead of $1,1100.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.