Ethereum (ETH) is yet to display a soft enough sentiment to reverse the market selloff despite hopes that the nearly 30% crash of May might be the lowest. Overall, the ETH sell-off in the crypto market is cooling down as bearish momentum declines. However, investors continued to worry about the rising risk of a recession and thinning margins. At the time of this analysis, ETH/USD is down nearly 3% in the last 24 hours per CoinMarketCap, having rolled back to $1,941 after its rebound to $2,145 on Friday. In recent updates shared by Ethereum developer, Tim Beiko, Ethereum’s Ropsten testnet is expected to merge in early June, specifically June 8. He states that two new beacon chains will be launched before then. Beiko further states that once the client code quality and testing coverage regarding the Ropsten merge are satisfactory, other testnets will then be merged, otherwise, the difficulty bomb might be delayed.
Key Levels
Resistance Levels: $2,700, $2,500, $2,300
Support Levels: $2,000, $1,700, $1,500
ETH/USD Daily Chart ETH/USD bounced around the $1,700 mark after its recent plunge. The pair now seeks to consolidate its gains above the $2,000 mark on the daily time frame, limiting predicted bearish potential. No negative correction is likely unless the recently formed support level of $1,700 is breached.
In the larger context, the gain from the $1,700 level is backed by the oversold Relative Strength Index (RSI) on the daily chart considered from the phase by 25 points. The moving average (MA 50) at $3,000 is the next rally target. This could be the favored situation as long as the $1,700 support level holds.
ETH/USD 4-Hour ChartThe intraday bias in ETH/USD stays bearish on the 4-hour chart despite declining selling pressure as it pivots around the key level of $2,000. The continuation of the rise from the $1,700 recent low is predicted to aim for the $2,300 to $2,500 level and might be confirmed by a sustained move above the $2,000 level.
On the downside, this bearish view might make the breach of the $2,000 key support level less important, focusing instead on the recent low at the $1,700 level. With the $2,300 level expected to come back into focus, a dramatic move lower might give the bears total leverage and weaken the short-term forecast.
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