The Ethereum price on May 11th experienced a decisive breakdown from the combined support levels of $1,827, a 23.6% Fibonacci retracement level, and a rising support trendline. This breakdown increased selling momentum in the market and set the ETH price for a longer downfall. However, this correction could be a temporary pullback, and the overall trend remains bullish in the long run.
Ethereum has been falling for seven consecutive days, reflecting the aggressive selling momentum in the market. Despite this, the ETH price correction still remains above the 50% Fibonacci retracement level, indicating that the market trend is bullish. The intraday trading volume in Ether is $9.5 billion, reporting a 7.5% loss.
At the press time, Ethereum was trading at the $1,766 mark, with an intraday loss of 1.61%. Although the red candle aligns with the breakdown of the support trendline mentioned above, the lower price rejection indicates that buyers are trying to regain trend control. The price rejection may cause a retest of the breach level to determine if the price sustainability lies at a lower chart level. If the selling pressure persists, Ethereum could tumble 15% to hit the $1,500 psychological support level.
On the other hand, Ethereum’s daily chart shows a long-support trendline indicating the overall bullish trend. The coin price has rebounded three times from this trendline, suggesting that traders are actively accumulating in the market dip. Therefore, a retest to the trendline could offer buyers an excellent opportunity to benefit from pullback trades. As long as this dynamic support is intact, Ethereum’s price may remain in a bullish trend.
In terms of technical indicators, the daily Relative Strength Index (RSI) slope shows a bearish divergence between the peaks of mid-January and mid-April, indicating weakness in the bullish momentum. Consequently, potential buyers should wait for a significant reversal sign at the support trendline before entering the market. Furthermore, ETH’s price falling along the lower band of the Bollinger Band indicator highlights the momentum selling in the market.
To summarize, Ethereum’s intraday levels are as follows:
– Spot rate: $1,767
– Trend: Bearish
– Volatility: Medium
– Resistance level: $1,830 and $1,920
– Support level: $1,700 and $1,600
It is essential to note that the presented content represents the personal opinion of the author and is subject to market conditions. It is crucial for individual investors to do their market research before investing in cryptocurrencies. Neither the author nor the publication assumes responsibility for any personal financial loss incurred.
Source: Coingape
