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The dust is settling gradually in the cryptomarket after yesterday’s bloodbath. Owing to the magnitude of the crash, it’s no longer about the dip, but rather the recovery. Ethereum had recovered swiftly on May 20 after plunging to lows of $1,900 during the market crash. At the time of writing, Ethereum was trading at $2,934, up 12.54% on the day while down 26.52% weekly; Ethereum’s market cap also stood at $317.8 billion to rank second largest. Though the market seems to be edging higher, it remains well below pre-crash levels and the rebound might come under pressure. Ethereum price not only slid to its lowest level since early April, on-chain data analytics platform Glassnode indicates that the number of Ethereum Addresses Holding 10+ Coins fell to its lowest levels in the last 14-months — to 265,938. The previous 14-month low of 266,011 was observed on 24 March 2020.
Key Levels
Resistance Levels: $4,000, $3,500, $3,000
Support Levels: $2,000, $1,500, $1,000
ETH/USD Daily Chart: Ranging
ETH/USD Daily Chart
ETH/USD stretched the bearish wave to lows of $1,900 on Wednesday, the lowest level reached since early April. ETH had resumed a downside move shortly after attaining all-time highs of $4,384 on May 12. The RSI is tilting upwards slightly in the bearish territory which may suggest that it’s time for an upside correction. The recent rebound may go a long way if ETH price successfully flips the MA 50 barrier at $2,774 into support.
Then, the next resistance could occur at $3,610 ahead of the $4,000 psychological level. A more aggressive upturn could drive ETH price towards the recent all-time highs of $4,384. On the downside, the bears would push efforts to clear the $1,900 level (ascending trend line support) and meet the MA 200 at $1,554. A tough barrier is envisaged at the MA 200 which if broken could trigger a more aggressive sell-off.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
ETH lost grounds during a choppy session on Wednesday. ETH afterward embraced support at $1,900 and subsequently began a recovery. ETH is presently consolidating its rebound while trading below its moving averages of 50 and 200. On the upside, the price remains constrained below the 4-hour MA 200 at $3,070 as this level would potentially provide immediate resistance if the market attempts to further recovery.
Once breached, ETH bulls should squash the range between the MA 50 and 200, falling at $3070-$3533 level to take the rally towards $4,175 and then all-time highs of $4,384. Should the price declines due to the MA 200 resistance, the $2,156 level and ascending trendline support at $1,900 would once again be of notable significance. Summarizing, the short-term risk is slightly skewed to the upside, while the outlook remains neutral to bearish as long as the ETH/USD pair trades below the MA 50.
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