Early June sessions saw Ethereum changing hands at $1,980. Ethereum had a long-term support barrier of $1,750 – $1,950. Some analysts speculated that ETH could prevent further declines in this territory and launch upside moves.
Nevertheless, a sudden fall below $1.9K and $1,750 witnessed ETH on sharp plunges. The declines took the leading alt towards the $890 mark. While publishing this news, Ethereum seemed ready to rebound to $1,075, changing hands at $1,070.18. Nevertheless, charts and indicators indicated that such an uptick would reveal selling opportunities.
Ethereum 4Hr Timeframe
Analysts used the rebound to $1,280 from $881 to plot FIB retracement zones on the 4hr chart. Bearishness within the past couple of hours saw ETH crashing through the horizontal foothold at $1,043 and the 61.8% retracement mark at $1,033.
The leading altcoin had respected the support at $1,043 last week. However, the latest break below this mark translated to a massive bearish stance. ETH’s market structure indicated possible new lows for the alternative token. Also, the Relative Strength Index stayed deep inside the bearish regions and displayed a reading of 23.
The alternative token might hit the previous low of $880. The extended downside would explore the confluence at 27.2% FIB extension at $773, plus the $756 long-term horizontal foothold.
Ethereum 1Hr Timeframe
Evaluating the 1hr chart shows severe selling momentum within the past few days. Ethereum lost approximately 17% within 48 hours. The alt seems ready to revisit $1,060 – $1,080. Meanwhile, ETH secured massive support at this value area one week ago. Retesting the zone from below would affirm the territory as a supply area. Traders can use this retest to execute short positions aiming at $880 – $900.
The hourly chart placed the Relative Strength Index at 17. Though such deeply oversold conditions don’t guarantee rebounds, they also don’t offer lucrative risk-reward entries. Thus, enthusiasts might wait a few hours before exploring the opportunity to execute ETH’s short position.
The on-balance volume and the Chaikin Money Flow saw sharp dips recently. These indicators confirmed the massive selling momentum behind ETH. Also, the DMI indicated a prevailing downside trend. The –DI and the ADX stayed well beyond the 20 levels.
The 4Hr chart reflected ETH’s former bearishness and how bulls failed to protect $1,080. Revisiting this level could or couldn’t emerge, but a revisit can present a lucrative entry for shorting investors.