Is This A Fake-Out in Ethereum, As It Pierces the Low After the Crash in May?
Ethereum is reversing higher after falling below May's lows earlier today
We are used to seeing stop hunting in forex. That means that larger trading/investing firms push the price by some distance beyond a certain support or resistance level, to trigger some weak stop losses from retail traders.
Although, we haven’t seen that in cryptocurrencies yet, since traders and investors have been mostly focusing on not missing buying opportunities most of this year, until the middle of May. But, the price action in ETHEREUM today might be such a thing.
The sentiment in the crypto market has been quite bearish for about a week and today ETH/USD pushed below May’s lows of $1,750, following the crash which we highlighted in our 2021 Ethereum forecast. But, the price reversed above $1,700 and it has climbed above $1,850 now.
So, this might have been some weak top hunting, but the sentiment is shifting in the entire crypto market, so perhaps this will be the end of the decline. The current candlestick looks like a doji, although it still has some time until it closes. So, let’s see, because all attempts from buyers have ended up lower eventually.
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