Ethereum (ETH) tipped in favor of the bears over the weekend of October 1. The second largest crypto was down 5%. This decline led ETH to break out of POC volume to the bottom. Currently, the crypto is trading above $1300, and is hovering around that level where volume is highest.
Ethereum (ETH) on a crucial level: POC volume
Over the weekend, Ethereum price broke 2022 POC volume down. This is the level (price) where the trading volume is the highest. This level is found at $1326. Thus, the price of one ETH stagnates around this level.
Indeed, this area should act as support, but this break down could turn it into resistance.
Between September 19 and September 21, the price of Ethereum broke below $1326, the POC volume for this year. Since then the bulls have been trying to break it up, but they haven’t found the momentum to do so.
With the appearance of a new candle ” monthly ”, investors can expect manipulation moves on ETH. Indeed, these movements will lower the price of Ethereum, which will attract impatient bears. Then, a pump will follow this decline, trapping short sellers.
Thus, every market participant should expect a move that will lead Ethreum to test the $1200 support. But also, we must not forget the existence of another support at $1050. This is all happening as a result of the POC volume breaking down by Ethereum price. Which means the continuity of the bear market. However, it looks like the $1050 support is ideal for hodlers hoarding ETH. Thus, this will cause a slight trend reversal causing the price of this crypto to rise to $1730.
What are the possibilities ?
In a bullish case, the price could reach $1730 and beyond. However, this rise could also cause the POC volume level to break upwards. In this case, we can consider a rise towards the psychological level of $2000.
On the other hand, if the POC volume is a resistance to the price of Ethereum, one could consider a decline towards $1000.
However, a return of the price above the POC volume at $1326 could indicate that the buyers have regained control. In this case, the bearish scenario towards $1000 of this crypto is unlikely to play out.
In sum, one could envision ETH falling to $1000 if the $1200 support level does not hold. But the bulls win, Ethereum could start a rise towards $2000 following a possible breakout of the POC volume to the top.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
