- Ethereum price has breached a stable support level at $1,080, after exhausting its uptrend.
- A breakdown of the $1,041 support level is likely to trigger a 15% downswing to $880.
- The bearish thesis will face invalidation if ETH manages to flip the $1,281 hurdle into a support level.
Ethereum price remains subdued by not one but two significant hurdles that have prevented an ascent for the past two months. The recent rejection comes due to a confluence of two outcomes, which has pushed ETH lower and could result in a further descent.
Ethereum price is far from ready for a recovery rally
Ethereum price is stuck trading in a range, extending from $1,281 to $880 since it was first formed between Juen 18 and June 26. The range high at $1,281 has been an important level even before ETH begins its coiling up.
So far, Ethereum price has retested and failed to flip this level into a support floor thrice. The latest rejection was on July 8, which has since led to an 18% downswing. This correction has also pushed ETH below the midpoint of the said range at $1,080.
Although Ethereum price tried to recover above the midpoint, it failed, confirming a successful flip of this support level into a resistance barrier. Going forward, investors can expect the Ethereum price to break down the immediate support level at $1,041 and revisit the range low at $880.
In some cases, it might even sweep the said level to collect liquidity resting below it.
Here, one of two things could happen. If ETH only sweeps the $880 level and recovers above it quickly, then the chances of another revisit to $1,280 seem plausible. However, if Ethereum price fails to do that, there is a good chance another crash to the $660 support level is likely.
ETH/USD 4-hour chart
While things are looking up for Ethereum price, investors need to note that it needs to overcome the 200-week Simple Moving Average (SMA) at $1,209 and the 200 four-hour SMA at $1,179 to arrive at the range high at $1,281.
If ETH manages to clear these hurdles, buyers still need to flip the $1,281 hurdle into a support level. Doing this will invalidate the bearish thesis for Ethereum price.