Overall, the crypto markets have fallen heavily over the last couple of weeks as inflation and recession fears weigh heavily on risk appetite. The market may be establishing a temporary bottom with ETH’s rebound now challenging the near-term barrier. The Ethereum outlook is highly uncertain, and risks remain tilted to the downside, making any significant rebound past $1,500 challenging. The ETH/USD rebound from a low continues to press past the $1,200 level in an attempt to gain further traction. Otherwise, a close below $1,200 may trigger a new round of sell-off towards $800. Another Ethereum Testnet is set to merge in early July. The Sepolia Merge is scheduled for July 6th. As tweeted by Ethereum developer Tim Beiko, TTD will be shared on Monday and clients should have been released with it as announced by EONW. It should be noted that Sepolia will be among two testnets (together with Goerli) that will remain active after the Beacon Chain launch. Kiln, Rinkeby, and Ropsten testnets will be demoted.
Key Levels
Resistance Levels: $$1,700, $1,500, $1,300
Support Levels: $1,000, $800, $500
ETH/USD Daily ChartThe ETH/USD continued recovering from lows above the $1000 levels while consolidating gains above that $1,200 level on the daily time frame, reducing predicted bearish potential. As was previously stated, no negative correction is feasible unless the recently established support levels of $1,000 and $879 are breached.
In a larger sense, the increase from the $1,200 level is regarded as the next phase of the trend from the low level reached at $879. The cluster resistance level at $1,500 is the next point of focus for a rally. This might be the ideal scenario as long as the $1,000 support level holds.
ETH/USD 4-Hour ChartThe target price for the intraday ETH/USD bias on the 4-hour chart is $1,300. The persistent split there might indicate that the uptrend from $1,000 and the predicted target of $1,500 to $2,000 from $879 will continue.
On the downside, this range picture might make the break of the $1,000 minor support level less significant and cause traders to pay more attention to the $879 support level in case of a downswing. The $879 level is expected to return to attention in the event of a significant move down, which could give the bears complete leverage and weaken the short-term outlook.
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