Why Markets Should Forget About $1,000 in Ethereum and Prepare for $600

  • Ethereum price drops as this week’s loss matches last week’s gains.
  • The price of ETH is expected to continue its decline until next week.
  • With the summer, the outflow of cash continues and the price of ETH is likely to drop towards $570.

Ethereum (ETH) price is frustrating traders trying to target any break below $1,000 to grab the price action and be part of a rally that will take them back to all-time highs next year. However, that is not how it works in trading, and certainly not in cryptocurrencies. Looking at a weekly chart, it becomes clear that the $1,000 marker is irrelevant and needs a bounce from $570 or a break above $1,404 before traders can start trading. take positions.

ETH Price Still Holds 45% Downside Margin

Ethereum price sees traders burning a lot of money trying to trade around $1,000 to use as an entry level for a rally. Looking at the larger time frame, it pays to take a look and find that even though it is on a psychological level, it has no bearing. Instead, it sits in the middle between $1,404 on the upside and $570 on the downside. With the bulls burning money, the bears can easily sit on their hands and watch the price action fall further in their favor.

ETH price is set to drop further and could easily cover another 45% of the downside margin before a significant pivot level is reached at $570. The new monthly S1 support level at $647 could already be a sandbox where the bears start to unload and close their short positions. The message here is that bulls should not try to hinder the descending steamroller which will crush any bull out of this attempt to catch the dip instead of waiting for the bounce.

ETH/USD weekly chart

As already mentioned, bulls who want to be part of a longer-term rally will instead want to wait for a strong bullish signal to emerge. This could be delivered once price action breaks above $1,404 and possibly breaks the red descending trendline. With this movement, the room opens towards $1,688 in a first phase and then $1,928, flirting with $2,000.