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Highlights
- The ETH buyers are actively defending the $2875-$2850 support region.
- A bullish breakout from the falling wedge pattern is needed to end the current correction trend.
- The intraday trading volume in Ether is $6 Billion, indicating a 37% loss.
Ethereum Price Analysis: Ethereum, the second-largest cryptocurrency by market cap is up $0.82 to trade at $2935 currently. This uptick signals another reversal from the support region around $2875-$2850, projecting a fourth reversal within a month. This active demand zone has prevented a prolonged correction in Ethereum and shifted the price trend sideways. How far will this consolidation continue?
Also Read: Ethereum Whale Liquidates ETH Portfolio At $6.5M Loss, Price Dip Ahead?
Ethereum Price Analysis: Is ETH Price Ready to Hit $4100?
The Ethereum price has traded sideways for nearly a month, resonating within two horizontal levels of $3300 and $2850. The coin price rebounded several times from both these levels indicating indecision among market participants.
However, if the consolidation continues, the ETH price hits the downsloping trendline of a falling wedge pattern which has carried the current correction trend for over two months.
If the overhead supply at this resistance is intact, the potential retest will accelerate supply liquidity in the market, bolstering Ether for prolonged downfall. The bearish thesis will get better traction if sellers break $2850 support.
The potential breakdown will plunge the Ethereum price to $2700, followed by $2600.
Furthermore, in a recent Twitter conversation, Eric Balchunas, a senior ETF analyst for Bloomberg, responded to developments regarding the ARK Invest/21Shares application to remove staking from its Ethereum (ETH) spot ETF. Balchunas noted that while this adjustment might appear to be aligning the ETF proposal more closely with SEC guidelines—a potentially positive sign—there has not been any specific feedback from the SEC yet.
Hmmmm. Interesting. While it may seem like this is them getting their docs in shape based on SEC comments (which would be good news) there hasn’t been any comments. So its prob either a Hail Mary or maybe trying to give SEC one less thing to use in their rejection. Not sure (yet) https://t.co/CeQwj5ktPn
— Eric Balchunas (@EricBalchunas) May 10, 2024
He expressed uncertainty about whether this change was a strategic move to avoid potential grounds for rejection by the SEC or simply a last-ditch effort to gain approval, describing the situation as either “a Hail Mary or maybe trying to give SEC one less thing to use in their rejection.”
As the market is uncertain about the approval of U.S Sec for ETH ETFs, the technical analysis hints a breakout above the wedge pattern could spark recovery sentiment.
A potential breakout from the overhead trendline will accelerate the bullish momentum and lead a recovery rally to $4100.
Technical Indicator
- BB Indicator: The ETH price pressuring the lower boundary of Bollinger Band on the downside indicates the selling pressure is active.
- Moving Average Convergence Divergence: Multiple crossovers between the MACD (blue) and signal (orange) lines accentuate the uncertain market sentiment.
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