Reversal From Key Support Sets ETH Price on 12% Rally; Buy Today?

Ethereum Price Analysis: For nearly two months, the Ethereum price has rallied a sustained recovery under the influence of an ascending trendline. The coin price bounced thrice from this support trendline indicating the traders are actively accumulating at this support. Thus, with the current uncertainty in the market, the Ethereum price is likely to revisit this support to replenish bullish momentum. When can you enter?

Key Points: 

• The Ethereum Fear and Greed index at 57% reflect a positive sentiment among traders for a further rally 
• A retest to the ascending trendline may offer a pullback opportunity to potential buyers
• The intraday trading volume in Ether is $8.2 Billion, indicating a 24% gain.

Source- Tradingview

On May 6th, the Ethereum price witnessed a significant outflow which recorded a nearly 4.8% intraday loss. With this price drop, the sellers offset the reached breakout of $1944 creating a situation of fake breakout.

This breakdown must have trapped the aggressive buyers as any further fall will likely trigger the stop loss of several long positions. Thus, the potential downfall may tumble the ETH price another 3-5% before hitting the long-coming support trendline.

Also Read: Top 10 Ways To Earn Passive Income From Crypto In 2023

This is the key support of buyers to maintain the ongoing recovery rally. If the coin sustains above the trendline amid this downfall, the buyers may trigger a fresh rally that could surpass the last swing high of $2130, registering 12-15% growth potential.

On a contrary note, a breakdown below the ascending trendline will trigger a significant correction.

Technical Indicator

Directional Movement Index: The DI+ above the DI- slope reflects a bullish direction in the Ethereum price. Moreover, an uptick in ADX slope near the 17% mark projects a great position to start a new recovery.

Exponential Moving Average: Along with support trendline, the 50-day EMA offers additional support to buyers.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1991
• Trend: Bullish
• Volatility: Low
• Resistance level- $1994 and $2140
• Support level- $1820 and $1700