- Course (ETH): $1,212 (previous week: $1,081)
- Short-term resistances/goals: $1,267, $1,425/1,473, $1,571, $1,713, $1,829, $1,909, $2,050, $2,164, $2,305, $2,448/2,485, $2,733
- Short-term supports: $1,062, $992, $935, $882, $720, $663/$634, $531/$489
- The ether price can recover noticeably after the strong sell-off last weekend and is now trading around 36 percent above its new low for the year of USD 882 at USD 1,209.
- The fact that Ethereum has risen noticeably north again in lockstep with the key cryptocurrency Bitcoin (BTC) in the last few trading days should continue to be rated bullish in the short term.
- Many investors seem to have used the price drop of the previous weeks for fresh entry into the second largest cryptocurrency.
- It is now up to investors to stabilize the ether price above the psychological mark of USD 1,000 in the coming trading days in order to confirm that it has bottomed out.
- The current price recovery in the major US stock indices is also positive Nasdaq100 and S&P500, which seems to be increasingly expanding into the crypto market.
The following courses must be taken into account
- Looking at the ether chart, as mentioned in the previous week’s analysis, the high at USD 1,267 continues to act as the first serious resistance. If stabilization above this relevant price mark is successful, the Ethereum chart image will continue to brighten.
- The recovery move should take Ether price back above 1,359 and into the gray resistance area between USD 1,425 and USD 1,473. Here, with the supertrend in the daily chart, there is a first stronger resistance area.
- If, on the other hand, Ethereum fails again at USD 1,267 and bounces dynamically south, a renewed retest of the purple support zone between USD 1,062 and USD 992 should be planned.
- Looking at the indicators, the MACD is now showing a first buy signal on a daily basis. The RSI can also break away noticeably from its oversold levels at 20 and is currently trying to rise back into the neutral zone between 45 and 55.
Bullish Scenario (Ethereum)
- Last weekend’s washout liquidated many leveraged long positions and drastically reduced open interest, which is the total amount of open bets on the upside.
- As a result of the capitulation of bullish investors, there was a counter-movement to the north.
- If the buyer side succeeds in lifting the ether price above the first relevant resist level at USD 1,267 in the coming days, Ethereum should rise quickly towards USD 1,359. Ethereum would also recapture the EMA200 in the weekly chart, an important indication of price stabilization.
- If the resistance at USD 1,359 is also overcome, a direct march through to the gray resistance zone is likely. In addition to the horizontal resistance, the supertrend is also waiting here. The first attempt should therefore be planned with a course setback.
The recovery is taking shape
- If the bulls can then stabilize the Ethereum price above USD 1,267 and subsequently break through the USD 1,473 mark, Ethereum should rise to around USD 1,571.
- If there is no massive profit-taking here either and the crypto market continues to recover, the target at USD 1,713 will come into focus. In addition to the strong horizontal resistance, the EMA50 (orange) and the downward trend line starting from the high at USD 2,164 also run at this price mark. A price bounce is therefore very likely.
- Only when the ether price stabilizes above USD 1,713 can a further increase up to the 23 Fibonacci retracement at USD 1,909 be planned.
- If the bulls can continue to build up buying pressure and Ethereum generates a daily close above USD 1,909, investors will focus on further recovery targets at USD 2,050 and especially USD 2,164. At the latest at USD 2,164 a stronger price correction is to be expected.
- If Ethereum also overcomes this strong resistance in the coming trading months, the price recovery will extend to the yellow resist area between USD 2,305 and USD 2,485. This resistance zone remains the maximum bullish price target.
- If, contrary to expectations, Ethereum is able to recapture this zone in the long term, the overriding target price will be activated at USD 2,733. Here you can find the tear-off edge from May 05, 2022.
Bearish Scenario (Ethereum)
- In the previous week, the seller side reached the maximum target range of between USD 922 and USD 842, which was mentioned several times recently.
- A technical countermovement, as can currently be seen, is therefore completely unproblematic for the bears.
- As long as the seller camp manages to cap Ethereum at USD 1,267, at the latest in the gray resistance area, a new sell-off can be planned at any time.
- Then the purple support zone comes back into view as the first target area.
- A drop below this zone noticeably increases the probability of a retest of the zone between USD 935 and USD 882.
New history lows come into focus
- If the bears succeed in undercutting this zone at the daily closing price, the correction will expand to around USD 720.
- Increased resistance from the bull camp is to be expected here again.
- If the crypto market does not stabilize in the coming months, it is also conceivable that Ethereum prices will continue to fall.
- Ethereum should then only find support between USD 663 and USD 634. In addition to the higher-level 50 Fibonacci retracment, the breakout level of December 2020 also runs in this support zone.
- Once again, stabilization attempts by the buyers’ camp are to be planned.
- However, if Ethereum does not find a footing here, the maximum overarching target range between USD 531 and USD 489 will come into focus.
Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.
The chart images were created using TradingView created.
USD/EUR exchange rate at the time of going to press: EUR 0.95.
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