Altcoin Analysis: Ethereum reaches New Yearly Low

  • Course (ETH): $1,775 (Previous week: $1,951)
  • Short-term resistance/goals: $1,906, $2,050, $2,164, $2,305, $2,448, $2,733/$2,815, $3,051/$2,993, $3,170, $3,273, $3,408/$3,577
  • Short-term support: $1,766, $1,713, $1,545, $1,489/$1,425, $1,359, $1,223, $1,083/$999, $922
Price analysis Ethereum (ETH) 27.05.22

Price analysis based on the value pair ETH/USD on Bitfinex

Ethereum Recap:

  • After a recovery in the previous week, Ethereum is still unable to stabilize sustainably and will slide to its lows from the summer months of the previous year on Friday, May 27.
  • Only after the strong support at $ 1,713 did the first courageous investors come back to the trading floor and stabilized the Ether price in the area of $ 1,770.
  • In a week-on-week comparison, Ethereum is now trading 16 percent below its pre-week price.
  • The significant sell-off in the last 24 trading hours led to Data from Coinglass for long liquidations of more than 157 million US dollars.
  • In addition to the bearish trend on the entire crypto market, the reason for the current price weakness can be seen in new technical challenges in the planned conversion from proof of Work to proof of stake.
  • The so-called beacon chain experienced a reorganization of the blocks on the Beacon testchain last Wednesday, May 25. In the short term, the Beacon blockchain had to be “forked”, whereby transaction blocks were processed on another parallel running version of the beacon chain.
  • Thus, the developers continue to struggle with the stability of the new blockchain, which could still jeopardize the planned launch date for Ethereum 2.0.
  • The $ 2,164 mark is now acting as the first strong resistance in an attempt to initiate a sustainable reversal movement.
  • Only a significant recapture of this Resist brand will bring new targets at USD 2,305 and above back into focus.
  • A sustained decline below the weekly low at $ 1,766 and the striking historical low at $ 1,713 activates new price targets in the range between $ 1,545 and $ 1,425.

Bullish Scenario (Ethereum):

  • The bulls repeatedly failed to recapture the $ 2,164 mark in the last few trading days and even failed several times at the top of the green chart area at $ 2,050.
  • As a result, on Friday morning, May 27, the Ether price briefly fell back to the striking historical low at $ 1,713, before a countermovement caused the price to bounce to the current $ 1,775.
  • Despite still very high staking rates, the Ether price slipped below $ 2,000 in the short term before a countermovement began.
  • The buyer side must now do everything possible to promptly recapture the 23 Fibonacci retracement at $ 1,906 in order to avert the danger of a new downward wave.
  • Then it is necessary to overcome the area around 2,050 USD as soon as possible in order to target the multiple resistance mark at 2,164 USD. In addition to the strong horizontal resist, the supertrend can now also be found here in the daily chart.
  • If a jump back over this resistance succeeds, the chart picture brightens in the short term and the chance of a trend reversal also increases.
  • As a result, the Ether price is likely to march further north into the yellow resistance area between $ 2,305 and $ 2,448. In this zone, in addition to horizontal resistance levels, the EMA50 (orange) is also found.
  • In the first attempt, a price rebound is likely.

More upward momentum imaginable

  • Only if Ethereum can break out above the $ 2,445 at the close of the day, the probability of a trend continuation back to the old tear-off edge of May 05 at $ 2,733 increases.
  • As discussed in the last price analysis, this resistance is to be regarded as the first important price target for the coming trading weeks.
  • If the Ether price also jumps back above this strong resistance in the course of a broader recovery movement, and can also break through the $ 2,815 mark, it is necessary to plan for the upcoming trading months at the latest in the range between $ 3,051 and $ 3,273 with a directional decision. A price increase back to this chart region also leads to a recapture of the EMA200 (blue) at currently around USD 2,900.
  • If Ethereum reaches the red resistance zone in the coming trading months, the MA200 (green) is also waiting here.
  • Once again, investors are likely to want to take profits.
  • If Ethereum can also recapture this chart area sustainably in the future, the target range between USD 3,408 and USD 3,577 will continue to be the focus of investors.
  • Currently, a jump above the 3,577 USD is not to be expected. Multiple economic and political uncertainties are likely to weigh on the price developments on the global financial markets in the coming trading months.

Bearish Scenario (Ethereum):

  • The bears took advantage of the low upward momentum in the last few trading days and sold off Ethereum again.
  • Another relevant price target at $ 1,713 has been precisely processed to the dollar.
  • New recovery movements could encourage the seller side to make new Ether sales in the coming trading days. As long as Ethereum does not dynamically break back above the $ 2,164, new historical lows can be expected at any time.
  • If Ethereum sustainably gives up the support at $ 1,713 in the coming trading days, the Ether price should directly approach the mark of $ 1,545. However, this support should only last for a short time.

The downward momentum could intensify

  • A sell-off to the grey support zone between USD 1,489 and USD 1,425 is more likely. The buyer side must necessarily oppose this in order to avert a more significant sell-off.
  • However, if there is no dynamic price reversal, Ethereum could even break away into the light blue support area. The zone between $ 1,359 and $ 1,223 was already a strong support area at the beginning of 2021.
  • Once again, the bull camp will try to turn the tide.
  • However, if the bears break through this area sustainably and $ 1,223 is undercut at the close of the day, the correction movement should extend to the range between $ 1,083 and $ 999.
  • This area already acted as a springboard for the subsequent price rally at the beginning of the previous year. With the 38 Fibonacci retracement, there is also strong chart support at $ 1,062.
  • The maximum bearish price target, as mentioned in the last price analyses, is still 922 USD.

Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are just an analyst’s assessment.

The chart images were created with the help of TradingView created.

USD/EUR rate at the time of writing: 0.93 Euro.

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