Ethereum Price Analysis: ETH Price Approaches 0.5% Fibonacci Retracement On Weekly Chart

By Rekha chauhan
May 7, 2022 Updated May 7, 2022
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Ethereum and Bitcoin

ETH price shows a movement that depicts the bearish undercurrent. Following, Thursday’s aftermath the price took some breather below $2,700. However, the buyers are advised to be cautious as the price is still under pressure and further lower movement cannot be ruled out.

  • ETH price fell for the third straight day on Saturday amid sustained selling momentum.
  • Expect more losses if the price closes below the 0.5% Fibonacci Retracement level on weekly basis.
  • The asset locked more than 5% weekly losses as trades below $2,700.

ETH price consolidates

Source: Trading View

On the weekly chart, the ETH price has formed two lower lows extending from $48,000 to $35,000 since November whereas only one swing low at $2,159 in January. Analyzing further, the price remains pressured below the 50-day EMA (Exponential Moving Average) at $2,930.

In addition to that, the price dwindles near the 0.5% Fibonacci retracement level at $2,628. The trading volume has been consistent with the fall in the price. Looking at mentioned arguments, we expect ETH to produce one lower low this time.

To do so, two things would be required, one a weekly close below $2,500, and the breakage below $2,159. If that happens then get ready for $1,700 in the medium to short-term.

However, things look quite pessimistic for the second-largest cryptocurrency a shift in the bullish sentiment would counter the prevailing bearish sentiment. A spike in buy orders could push the price to test the 50-day ema at $2,969. This might fuel the investor’s demand for $3,000.

As of press time, ETH/USD holds at $2,680, down 0.43% for the day.

Technical indicators:

RSI: The weekly relative strength index oscillates near the average line. Any downtick in the indicator could strengthen the bearish outlook on the asset.

MACD: The moving average convergence divergence trades below the midline.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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