Important course mark reached: Ethereum (ETH): Course collapses by 40 percent

Ethereum-Münze vor rotem Hintergrund

Ethereum Recap

  • The strong sell-off on the entire crypto market also caused a massive price correction for Ethereum in the last seven trading days.
  • After falling dynamically below the strong support at USD 1,713, the ether price collapsed and peaked at a new low for the year at USD 1,013 before the price stabilized for the first time.
  • Ethereum has thus worked through an important support area addressed in previous price analyses.
  • Another reason, in addition to the ongoing correction in the classic financial market, is the uncertainty in the lending sector.
  • The impending collapse of various DeFi protocols, which also accelerated the sale of synthetic tokens pegged to the ether price, such as stETH, is also having a negative impact on the price of the second largest cryptocurrency.
  • Looking at the ether chart, the history high at USD 1,267 now acts as the first serious resistance. A recapture of this price mark should lead to an initial recovery back above 1,359 to the gray resistance area at USD 1,425.
  • However, should Ethereum undercut the key support at between USD 1,083 and USD 999 at the daily closing price, further bearish price targets at USD 922 and USD 842 will immediately come into focus.

Bullish Scenario (Ethereum)

  • After several weeks of falling volatility, the bearish breakout below USD 1,713 provided a noticeable increase in price action.
  • With the fall back into the purple support zone, the ether price reached its first overarching price target within a few trading days.
  • For three trading days now, the bulls have been trying to stabilize the price of the second largest cryptocurrency above the psychological USD 1,000 mark.
  • The first attempt at a counter-movement back above the daily high of June 14 has failed several times so far.
  • Only when the bulls recapture the resistance level at USD 1,267 at the daily closing price is a further recovery movement in the direction of USD 1,359 and in particular in the direction of USD 1,425 conceivable.
  • If this resistance is also broken, a first directional decision at USD 1,537 should be planned. The super trend in the daily chart is also currently running here.
  • First profit-taking must be planned for.

Back towards the tear-off edge

  • Should the ether price be able to break out of this resistance in the coming trading days, the view should be directed towards the tear-off edge at USD 1,713. There is a strong technical hurdle between $1,713 and $1,909. In the first attempt, the ether course will bounce south here.
  • In addition to the 13 Fibonacci retracement, the EMA50 (orange) also acts as another hurdle.
  • If the bulls can then continue to generate buying pressure and Ethereum jumps above USD 1,909 at the end of the day, new recovery targets at USD 2,050 and especially USD 2,164 are activated. Here the ether course should weaken again and bounce off to the south.
  • Only a broad-based recovery on the classic stock market could also allow the crypto market and thus Ethereum to rise further north.
  • Possible targets can be found at USD 2,305 and USD 2,485. For the time being, the yellow resistance area is to be regarded as the maximum bullish price target for the coming trading weeks.
  • As long as Ethereum does not sustainably recapture this zone, there is little chance of another recovery rally towards the old May 5 stall at $2,733.

Bearish scenario (Etaround)

  • The bears impressively showed the bulls who is currently boss in the ring.
  • If the seller succeeds in capping Ethereum at USD 1,273 and Ethereum slips again towards USD 999 in the coming trading days and gives it up dynamically, the correction movement will continue southwards.
  • The ether course should correct without detours to at least USD 922.
  • If the buyer side remains abstinent here too and the USD 922 is also abandoned, a further sell-off up to USD 842 is to be planned.
  • However, this support mark is probably only an intermediate stop on the way to USD 720.
  • Increased resistance from the bull camp is to be expected here again.

A further 30 percent course correction cannot be ruled out

  • If the crypto market fails to stabilize in the medium term, the ether price is likely to slide further south and target the zone between USD 663 and USD 634. In addition to the higher-level 50 Fibonacci retracment, this support zone also contains the breakout level from December 2020.
  • If Ethereum does not find a footing here, the maximum overarching target price moves into the eyes of investors. The maximum bearish target range is between USD 531 and USD 489. This means that there is further sales potential of around USD 500 or a good 50 percentage points.
  • Although the RSI and MACD indicators are still oversold on a daily and weekly basis, the history from 2018 shows that both indicators can remain in this status for a longer period of time.

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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