Analysts say Ethereum price must hold this key level to avoid a capitulation-level move

On May 12, the crypto market was again in pain as the ripple effect of the Terra’s LUNA failure and UST failure continued to affect the ecosystem.

Although the impact of UST on Bitcoin (BTC), and the media coverage surrounding it have been extensive, the pullback also had a significant effect on Ether’s price (ETH). This is because traders quickly exited the market.

TradingView and Cointelegraph Markets Pro data show that Ether has dropped to $1,701 in the last seven days. This is a new record since July 2021.

ETH/USDT 1-day chart. Source: TradingView

Here are some thoughts from several analysts about Ethereum’s future and the support and resistance levels that should be monitored.

Ether must reclaim $2250

Crypto analyst and pseudonymous Twitter User ‘Rekt Capital” documented the overnight plunge to the low $1700 range. He posted the following chart, which shows the major support zones and resistance zones for Ether.

ETH/USD 1-month chart. Source: TradingView

Rekt Capital said:

“If Ether fails to rebound strongly from this level, so that Monthly Close is above the black $2,250 above, the $1,720 may reveal weakness and might not hold price.”

Rekt Capital stated that if there is a price collapse, the blue area on the chart will be the “next major support sub $1720,” and is located at $1,350.

The 2021 summer lows are over

The following tweet from ‘Crypto Feras” provides insight into Ether’s price action should it fall. He mused that it was crazy to think about Ether falling to such lows just a few months ago.

ETH/USDT 1-day chart. Source: TradingView

Crypto Feras said:

“Technically Ether has bounced off its 2021 summer lows (outperforming Bitcoin thus far). Either this $1,700-$1,800 range is the bounce area or we will have to test the $1,400 zone.

Related: How long can the crypto bear market continue? Raoul Pal’s macro analysis

Possibility of a short-term retest at $1,550

Caleb Franzen, market analyst, discussed a longer-term perspective on Ether’s price movement. He suggested that a “bearish” breakdown below a major trendline would be possible.

ETH/USDT 1-week chart. Source: Twitter

Franzen said:

“It is possible that we will retest the January 2018 highs of $1,550 in the next 24hrs. Another bearish signal is if/when we break below the former resistance level.

The total cryptocurrency market is now worth $1.219 trillion, and Ether has a dominance rate of 19.2%.

com. You should do your research before making any investment or trading decision.

Close Bitnami banner