By Franklin Smith
The macroeconomic uncertainties triggered broad market corrections, sending the crypto market cap beneath the $900 billion level. The week had Ethereum on massive volatility after the leading alt lost the crucial support at $1,700.
Meanwhile, the latest bearish engulfing substantially tainted buying capability within ongoing market dynamics.
The drop under $1,000 dragged Ether to the lows seen in January 2021. Short-term buying resurges after the latest lower prices rejection might propel ETH to test its closest supply territory. While writing this content, Ethereum traded at $1,035.8, 4.11% up within the past 24 hours.
Ethereum 12Hr Timeframe
The 12hr chart shows Ethereum’s evening star pattern following the latest lower piece rejection from $1,000 support. A decisive closing past $1,093 might propel short-term bullish efforts. That would see Ethereum testing its closest supply region.
Such developments will see ETH eyeing targets at $1,173 – $1,129. Nevertheless, the current candle should end as green to confirm the morning star candles’ strength. A closing beneath the $1,000 foothold would cancel the buying actions, welcoming selling tendencies towards the $930 mark.
Ethereum Daily Timeframe
The 24hr chart shows Ethereum hovering beneath its 20 Exponential Moving Average. Historically, such gaps authorized revivals. However, the ongoing macroeconomic conditions have Ethereum on thin ice. Sellers remain in control as the prices kept hitting the Bollinger Bands’ lower band within the previous week.
The Relative Strength Index matched the price action, affirming a bearish market. The indicator hovered inside the oversold territory. For now, buyers would target the resistance at 25. Meanwhile, the CMF and the OBV optimistically diverged with ETH prices amidst somewhat higher troughs within the past six days.
Final Thought
Ethereum might test its closest supply zone due to the 12hr bullish candle setup plus the bullish divergences & oversold reading on the 24hr chart. The targets remain as highlighted above.
Meanwhile, a closing beneath $1,000 might see the fear sentiment driving Ether to $913 – $930 before rebounding. Moreover, investors should watch BTC’s actions as they can impact the broader market outlook.
What are your views about the prevailing market conditions? You can leave a reply in the section below.