The overall cryptocurrency market remains turbulent with Ethereum (ETH) trading 2% lower for the day. Ethereum also saw a dramatic sell-off on May 5 as the market grapples with weaker growth which follows broad-based risk-off sentiment lower and dips to as low as $2,631 on the prior day. The current ETH trend reinforces the view that the corrective pattern from $3,581 is ongoing as long as the price holds beneath the daily moving average (MA 50 and 200), more losses are predicted. Although bears remain in play amid Ether’s rebound attempt around the $2,700 zone, limited selling is expected to provide better buying opportunities. At the time of analysis, ETH/USD is trading at $2,685 and might set the stage for a resumption of a downtrend. Robinhood has added Grayscale Ethereum Trust (ETHE) to its list of assets available for trading on its platform, according to Barry Silbert, founder of DCG (Grayscale parent). This allows investors exposure to ETH in the form of securities while avoiding the difficulties of directly purchasing, storing, and safeguarding ETH.
Key Levels
Resistance Levels: $3,200, $3,000, $2,800
Support Levels: $2,500, $2,300, $2,000
ETH/USD Daily ChartEther has recovered from a downtrend that began on Apr. 3. Following, the price has declined from a high of $3,581 to a low of $2,631 as of yesterday. With the low level of $2,631 well ahead of the psychological low level of $2,500, a base is already forming. The price seeks to rebound, but it does not appear it might break through the $3,000 resistance level in the near future.
The daily chart above depicts the main regions to monitor. The yearly low is near the $2,159 level from where the ascending trendline begins, while the next key support is near $2,000. A break from current levels in either direction could provide insights into the ETH price trajectory in the future. A break in either direction could provide adequate information about the actual price trajectory in the future.
ETH/USD 4-Hour ChartOn the 4-hour time frame, there appears to be little clarity at the moment, but the crypto market can change in an instant. Ethereum has been trading in a range since early April, with a reasonably big upward correction to $3,179 recently. The price has also crept back beneath the short-term moving average of 50 after achieving the retracement.
This contraction could indicate that the recent negative action has lost momentum, allowing for a greater comeback. ETH/USD might find support at $2,600 and $2,500 if the sellers keep pushing it down. On the other side, if the bulls recover from $2,700 it might re-attempt the $3,000 zone, with the bulls rebounding past here, next is breaching above $3,200.
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