The Ethereum price has been rallying for nearly two months, supported by an ascending trendline that has seen the coin’s price bounce thrice. Investors are actively accumulating at this support, signifying a potential opportunity for further growth. With the current market uncertainty, Ethereum’s price is likely to revisit this support to replenish bullish momentum. So, when is the right time to enter the market?
The Ethereum Fear and Greed index stands at 57%, reflecting a positive sentiment among traders for a further rally. Additionally, a potential retest to the ascending trendline may offer a pullback opportunity to potential buyers. The intraday trading volume in Ether is $8.2 billion, indicating a 24% gain.
On May 6th, Ethereum’s price experienced a substantial outflow, recording a nearly 4.8% intraday loss. As a result, sellers offset the reached breakout of $1944 <|a href=/?s=ETH>|<|a>|>, creating a fake breakout situation. This breakdown might have trapped aggressive buyers since any further decline is likely to trigger the stop loss of numerous long positions.
Consequently, the potential downfall may tumble Ethereum’s price by another 3-5% before hitting the long-awaited support trendline, which happens to be the key support for buyers to maintain the ongoing recovery rally. If the coin sustains above the trendline amid this downfall, buyers may trigger a fresh rally that could surpass the last swing high of $2130, registering a 12-15% growth potential. However, a breakdown below the ascending trendline might trigger a significant correction.
Several technical indicators provide further insight into the direction of the Ethereum price. The Directional Movement Index (DMI) shows the bullish direction, with the DI+ being above the DI- slope. Moreover, an uptick in the ADX slope near the 17% mark projects a great position to start a new recovery. The 50-day Exponential Moving Average (EMA) offers additional support to buyers alongside the support trendline.
In summary, Ethereum’s price finds itself at a crucial point, with the potential to continue its rally or correct significantly. Investors should keep a close eye on the support trendline, intraday trading volumes, and relevant technical indicators to determine the best course of action. Remember, the presented content may include personal opinions, and it is always crucial to conduct your market research before investing in cryptocurrencies.
Ethereum Coin Price Intraday Levels:
– Spot rate: $1991
– Trend: Bullish
– Volatility: Low
– Resistance level: $1994 and $2140
– Support level: $1820 and $1700
Source: Coingape
