Ethereum is forming support near $1,000.
The price of the cryptocurrency has weakened due to the decline in the DeFi and NFT areas.
Ethereum is in a downtrend right now as the price remains bearish.
Ethereum ETH/USD has been fluctuating between the $1,000 to $1,100 level for almost three weeks. We do not consider level/area as established support. However, the bulls resist further downside, and there could be a potential reversal. At the current price of $1,047, Ethereum has recovered slightly. This was after falling below $1,000 in the third week of June.
Since Ethereum peaked at $4,800 in November 2021, Ethereum has failed to equalize gains. The weakness of crypto and declining interest in NFT and DeFi have contributed to the decline. NFT sales are now at their one-year low. Sales in June were the lowest in the year. However, NFT and DeFi remain popular market segments as the crypto sector booms. We believe it is the case as to when and if Ethereum will recover to its former self. Investors should keep an eye on the decline in prices to push the price higher. The key question is, has Ethereum bottomed out in the $1,000-$1,200 area?
Ethereum Consolidates Lows At $1,000 But Prices Are Under Pressure
Source – TradingView
Technically, we see $1,000-$1,100 as a potential zone for Ethereum. The cryptocurrency is establishing the area as a key support. However, technical indicators suggest that Ethereum could fall further. Although the MACD line moves above the moving average, it is yet to break out of the bear zone. Again, the 14-day and 21-day moving averages suggest a bear market. A rally is confirmed if the price successfully moves above the moving average. The price hike should also coincide with an improved crypto sentiment.
Another possible bottom is support established near $750. $750 is a very realistic bottom for Ethereum with the current bear market. If Ethereum breaks below $1,000 this level will be reached. For now, there is no definite bottom for Ethereum, and the price could drop further.
Ethereum is bearish in development towards the $1,000-$1,100 support. The coin is still not bullish and the price could drop to $750.