Main navigation

Ethereum Successfully Bounces off $1,030 Support Line, Gains 5% in Last 24 Hours

Wed, 07/13/2022 - 11:37
article image
Arman Shirinyan
Ethereum is finally showing positive price performance, but it might not be enough
Ethereum Successfully Bounces off $1,030 Support Line, Gains 5% in Last 24 Hours
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

In one of our recent cryptocurrency market reviews, we described how Ethereum is reaching an important support level that might become a foundation for a potential upcoming reversal rally on the second biggest cryptocurrency on the market.

The support was based on the previous price performance of Ether that had already reached the $1,000 price range on June 18 and July 1. Luckily, the buying power of bulls was enough to elevate the price of the asset with the local support which, if broken, could have launched Ether directly to new local lows.

Ethereum chart
Source: TradingView

In addition to the historic price support, Ethereum is guided by the local trendline support, which could be part of the wedge formation that quite often appears during sharp up- or downtrends.

The wedge formation is a reflection of the market's "cooldown" after a volatile and strong price move. Traders are usually accumulating assets that are moving in the wedge formation as some treat it as a reversal pattern.

What might push the price of Ethereum up?

Unfortunately, the 5% bounce should not be considered a major move for a relatively volatile asset like ETH as it needs to gain at least 100% of its current value to recover at least half of the losses it faced since May.

SEC Extends Deadline for Approving Ark Invest’s Bitcoin ETF

The only realistic catalyst in the industry right now is the expected inflation data, a relatively calm rate hike and a lack of events that could somehow discredit the cryptocurrency market and the industry itself.

According to the most recent data on institutional net flows, large investors are not yet ready to support the digital asset market and remain cautious while waiting for a fundamental change in market sentiment.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.