Ethereum price is falling as it outstrips gains from last week. It risks falling to $570 before recovering more than 6% on June 4. FXStreet analyst Filip L. thinks that $600 will be critical if $1,000 is broken.
Why do analysts forget $1,000 in Ethereum and wait for $600?
Ethereum (ETH) is frustrating investors trying to target any break below $1,000 to be part of a rally that will return them to ATH levels. However, in reality, cryptocurrencies definitely don’t work that way. Looking at the weekly chart, it is clear that $1,000 is of no importance and traders need either a bounce from $570 or a break above $1,404 before they can start positioning.
Ethereum price still holds 45% to the downside
Ethereum fluctuates above $1,000 for investors to use as an entry level for the rally. Looking at the broader time frame, it pays to see and discover that it doesn’t matter. Instead, they can wait midway between $1,404 on the upside and $570 on the downside. This time, however, the bulls wait for the cash, while the bears can easily watch the price action fall further in their favour.
However, according to analyst Filip L., there are scenarios where the ETH price will go up. For example, it could cover another 45% before it hits a significant significant level at $570. The new monthly S1 support level at $647 is an area where the bears are starting to close their shorts. The message here is that the bulls should not try to smash any bulls from this attempt to catch the drop rather than wait for the bounce to get ahead of the downward momentum.
On the other hand, bulls who want to be part of the rally will wait for a strong bullish signal to appear. The bulls could take the stage once the price breaks above $1,404 and possibly breaks the red descending trendline. With this move, it opens at $1,688 in the first stage, then $1,928 and flirts with $2,000.
The other reason is NFTs?
The NFT ecosystem recorded its worst performance of the year in June 2022. This is due to the total daily sales dropping to around 19,000. The estimated value of the market is currently $13.8 million. Additionally, the number of transactions of ETH has also decreased sharply. Thus, it reached its lowest level last year.
After reaching the ATH level in November 2021, the metric has seen almost no sunlight. As can be seen from the past, price uptrends continue to be associated with an increasing number of transactions. Unfortunately, that is not the case here. As Kriptokoin.com, we have discussed the top 10 NFT projects by sales volume in this article.
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