Ethereum Rejects Bears At $2,800: Are Bulls Preparing To Retest All-Time Highs?
Ethereum found strength on May 2 but failed to push above $3,000. Technically, ETH has strong support at $2,800
Ethereum, like Bitcoin, is also firm after yesterday’s relieving price action. The coin is trading close to the psychological $3,000 level, but bears are still in control. Nonetheless, the soaking up of selling momentum could be the foundation of further gains. Looking at the daily chart, it appears that the coin is finding strong support at the $2,800 and $2,900 zone. This is because there are long lower wicks every time prices retest this area. If bulls take over and are catapulted from this zone, ETH would likely find more strength going forward.
At press time, Ethereum is up 2% in the last day but down 6% in the previous trading week. Confidence remains now that sellers didn’t comprehensively close below $2,800. Though prices are up, participation is lackluster. At the time of writing, the average trading volume is down to $12 billion, shrinking by roughly 34%.
The following Ethereum news events are worth watching:
- Activity on Ethereum is flat, and gas fees are low. As of early May, Bitcoin transaction fees and Ethereum gas fees are at almost the same level. This is after the initial FOMO surrounding the launch of the Runes Protocol on Bitcoin subsided. A few days after Bitcoin Halving, the average trading fees remained high, at one point rising to $40.
- Eyes are on the Ethereum Foundation following news that the United States SEC has been investigating ETH for at least a year. Recent on-chain data showed that the foundation sold 100 ETH for DAI. However, this shouldn’t be a cause for concern since the non-profit regularly sells the coin.
Ethereum Price Analysis
There is panic across the crypto scene due to falling prices.
Nonetheless, ETH/USD is relatively firm, judging by the price action in the daily chart.
So far, ETH is cordoned between $2,800 on the lower end and $3,300 on the upper end. Sellers are dominant, moving in the direction set by April 13.
As long as prices move inside this bar, ETH will likely break $2,800.
A conclusive, high volume close above this line may see the coin tumble to $2,600 and $2,200.
If there is a close above $3,300 with similar participation, ETH’s fortune will change.
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