Early in June, Ethereum fell below the $1700 demand zone, and the king of altcoins had no immediate plans to recover. The $1000 band of support has been held for the past month, while the $1300 resistance has not yet been broken.
Ethereum Ranging Between $1,000 to $1,200
Although Ethereum seemed to establish a range, it was probably just imitating Bitcoin. The king coin also established a range, and it would need perseverance to traverse the markets without suffering a great deal of loss.
ETH/USD hovers around $1k. Source: TradingView
Since Ethereum initially began trading on Binance in 2015, there have been two primary ascending lines on the weekly timescale. Prior to the price falling below $1,500, the white line served as support and the yellow line served as resistance. To further emphasize the relevance of the present price in relation to earlier market valuations, the 200-week moving average line (in light blue) is also shown.
In a scenario where price moves in favor of the bulls, the price would rise over the MA200, which is located at $1200, and then rebound above the resistance zone between $1300 and $1500 before consolidating above $1700 and breaking the white trendline.
However, it appears to be a challenging mission given the uncertainties in the macro picture brought on by the potential for a recession and a lack of liquidity.
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On the other hand, reaching the horizontal support at $500 (in green) will not be out of the question if the bears can force the price below the support zone at $880-$1000.
The volume of trades for the past month has been higher than either April or May on their own, and it has been fairly stable in recent weeks. This demonstrated that long-term bulls and bears were interested in where ETH was trading. $1000 would be a crucial area for Ethereum buyers to defend because it has psychological significance as well.
Active Addresses Hit 2-year Low
According to the July 12 State of the Network newsletter from Coin Metrics, the quantity of monthly unique 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 roughly 9 million in late March 2022. The number has since fallen to as low as 6 million, the lowest level in the previous two years.
Source: Coin Metrics Charting Tool
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.
Related reading | TA: Ethereum Breakdown Looks like the Real Deal, $1K Is The Key
Featured image from Unsplash, chart from TradingView.com