Ethereum analysis – ETH course corrected, when is the breakout coming?
3 min readEthereum has consolidated in the last 4 trading days and has shown clear signs of price weakness for the first time since the price increase on March 10th. One reason can be seen in the funding rates on leveraged long bets. A large number of traders had recently opened bullish bets on a sustained rise in Ethereum’s price – a treat for market makers to liquidate these positions through larger sell-offs.
In the last 48 hours of trading, the crypto market corrected again more significantly and gave up the first important support at 2,072 USD for the time being. As a result, Ethereum (ETH) slipped back below the psychological 2,000 USD mark and is currently valued at 1,946 USD, not far from the last breakout level around 1,913 USD. According to Coinglass, 31 million USD of leveraged positions have been liquidated in the last 24 hours. Investors should keep an eye on the US dollar index (DXY), as a strength in the US dollar price should mean headwinds for the crypto space.
Ethereum Course: Bullish Price Targets
Bullish price targets: 2.013 USD, 2,072 USD, 2.147 USD2,305/2,458 USD, 2,694/2,815 USD
Now it is up to the buyers to defend the green support area between 1,913 and 1,882 USD in the short term in order to prevent the correction from expanding to at least 1,822 USD. Here you can find the supertrend in the daily chart.
A retest of the broken support at 2,072 USD should only be planned when Ethereum can again overcome the important chart mark at 2,013 US dollars. A preliminary decision is made at this make-or-break level. If a recapture of this price level succeeds, the bulls could target the high for the year again at 2,146 USD.
Only when the striking low of January 24, 2022 at 2,161 USD has also been broken will the medium-term target zone between 2,305 USD and 2,458 USD become the focus of investors. This is where the trailing edge before the strong sell-off in May 2022 can be found. In this area, renewed profit-taking is to be expected.
The maximum parent price target for Ethereum is unchanged at 2,694 USD. In addition to the important old support mark from May of the previous year, the golden pocket of the complete price movement, starting from the all-time high, can be found here.
Bearish price targets for the coming trading weeks
Bearish price targets: 1,913/1,885 USD, 1,822 USD, 1,791/1764 USD, 1,716 USD, 1,687/1,663 1,588/1,560 USD, 1,476 USD, 1,416/1,371 USD
The bears have launched a counterattack in recent days. As mentioned in the last price analysis from April 13, the sellers had to avert a sustained breakout above the high from August of the previous year. In the short term, this seems to have worked. Ether corrected eight percentage points back below 2,000 USD before stabilizing.
As long as Ethereum remains capped below $2,013 and falls below the 1,885 USD mark in a timely manner, Ethereum should target the cross-support at 1,822 USD. In addition to an important horizontal support, the EMA50 (orange) also runs here. The buyer side must counter this.
If this price level breaks on a daily close basis, the correction extends into the red support area around the April low. The support at 1,764 US dollars should only provide a short-term stop. Rather, a course setback to the yellow support zone between 1,716 US dollars and 1,663 US dollars is to be planned.
There are some strong supports here. Above all, the golden pocket of the last upward movement and the EMA200 (blue) in the daily chart. In addition, this zone was the springboard for the rise of the last 4 trading weeks in March. Therefore, from a chart technical point of view, this area represents the optimal correction target in the short term and could act like a magnet on Ethereum.
Ethereum: A look at the indicators
RSI slipped into the neutral zone between 45 and 55 on yesterday’s sell-off. As long as the 45 is not breached, the bulls could initiate a new upward movement here. The MACD indicator also threatens to form a fresh short signal if the price weakness persists. However, the RSI shows an initial bullish divergence on the 1-hour chart. The next two trading days should show whether this signal is sufficient to form a bottom above 1,882 USD.
