Ethereum at $1020, Will It Fall Below $1000 Soon?

Ethereum has plunged more than 8% in the past 24 hours as the crypto carnage continues. Bears are in control of the market as the coin moves very close to the $1000 price level. The big sell-off has also greatly impacted Bitcoin as the crypto itself lost more than 33% in the past week.

This has also caused other market movers to fall seriously in their respective charts. Ethereum lost support at $1300 and is now looking at $1000. Buyers have exited the market as the coin remained extremely sold out.

The global cryptocurrency market cap today is $950 billion with a 3.7% decline in the last 24 hours. The coin’s trading volume also grew significantly over the past day.

In recent days, Ethereum has seen significant volatility as the coin traded between $1600 and $1200 respectively. If the market sell-off continues, ETH may not witness a price correction during the immediate trading sessions.

Ethereum Price Analysis: One Day Chart

Ethereum was priced at $1122 on the one-day chart | Source: ETHUSD on TradingView

ETH traded at $1122 on the one-day chart. The coin last traded around this level in late January 2021. This point for the coin had caused a rally in the past with the coin rising and trading above $4000.

Pull the sellers could potentially drag Ethereum below the $1000 price point. The coin’s immediate price support level was at $1014.

The volume traded was in the red, signaling bearish control over the market. The resistance for the coin was at $1271 and then $1600. A buyer’s entry could help ETH bounce back at $1200.

Technical analysis

Ethereum was oversold on the one-day chart | Source: ETHUSD on TradingView

After the coin took a nosedive, selling power increased exaggeratedly. The Relative Strength Index also hit its lowest point for the year, meaning there is still a lot of selling going on in the market.

RSI was parked below the 20 mark, meaning sellers had taken over the market. Usually, after a big sell-off, the price tends to show a correction.

However, other technicals on the charts continue to point to bearish price action, so it’s difficult to pinpoint when and how quickly ETH will bottom out.

Similarly, the price of ETH was below 20-SMA and it also meant that the market favored the sellers as they drove the price momentum.

Related literature | TA: Ethereum Could Resume Decline Below $1,100, Bears in Control

Ethereum Flashed Selling Signals on the One Day Chart | Source: ETHUSD on TradingView

In line with other indicators, the moving average convergence divergence also showed a negative value. MACD reflects the price momentum and the change in it. The indicator underwent a bearish crossover and flashed red histograms.

The red histograms got bigger and were sell signals for Ethereum. Chaikin Money Flow shows bearishness, meaning capital inflow was negative compared to outflow. This indicated heavy bearish price action in the market.

Related literature | Ethereum Drops Below $950 on Uniswap Overnight – Here’s Why

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