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Ethereum Getting Ready to Reverse Last Week’s Losses?

Arslan Butt•Monday, May 6, 2024•1 min read

Ethereum Getting Ready to Reverse Last Week's Losses?
Will altcoin season boost Ethereum prices?

Ethereum (ETH) mirrored Bitcoin’s price action, recovering from a recent dip and consolidating above $3,000.

Possible Altcoin Season? Altcoins Show Strength

Other major altcoins, including DeFi and NFT tokens, are showing strength, potentially outperforming Bitcoin in the near future. A rebound in the ETH/BTC pair could pave the way for altcoins to reach their mid-range.

Recent whale accumulation of ERC-20 tokens, including LINK and Pepe, suggests a potential bullish trend for Ethereum.

Ripple CEO Backs Ethereum

Ripple CEO Brad Garlinghouse’s support for Ethereum against the SEC’s classification strengthens the argument against restrictive crypto regulations. This alliance could benefit the entire crypto industry.

ETH/USD Technical Analysis

Despite a slight decrease, Ethereum remains above its 200-day exponential moving average, indicating a positive long-term trend.

ETH overcame resistance levels at $3,050 and $3,120 but faced hurdles near $3,165. A bullish trend line forms with support at $3,110, suggesting potential upside.

Immediate resistance sits at $3,165, with major resistance at $3,200 and $3,250. A break above $3,350 could propel ETH towards $3,500 and $3,620.

Support Levels in Play

  • If the bulls falter, initial support is around $3,100, followed by the trend line and the 50% Fib retracement level at $3,000.
  • The main support zone rests at $2,940, with a break potentially leading to $2,820 and $2,650.

Technical Indicators

  • The MACD momentum is slowing in the bullish zone on the hourly chart.
  • The RSI on the hourly chart is above 50, indicating neither overbought nor oversold conditions.

The recent consolidation suggests ETH might be preparing for its next move. Overall, Ethereum is in a wait-and-see phase. A break above $3,165 could trigger further gains, while a drop below $3,000 might lead to a price correction.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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