The cryptocurrency market experienced another day of pain on May 12, as the fallout from the failure of Terra’s LUNA and UST continues to reverberate through the ecosystem.
While the coverage of UST and its impact on Bitcoin (BTC) have been widely covered in recent days, the pullback has also had a significant impact on the price of Ether (ETH) as traders rushed out of the market. .
Data from Cointelegraph Markets Pro and TradingView shows that the last seven days of selling dropped Ether to $1,701, a price not seen since July 2021.
Here’s what various analysts are saying about the outlook for Ethereum and what support and resistance levels to watch.
Ether needs to recover the $2,250
The overnight crash to the $1,700 range was documented by cryptocurrency analyst and anonymous Twitter user ‘Rekt Capital’, who public the chart below outlining the major support and resistance zones for Ether.
Rekt Capital said:
“If Ether is not able to rebound strongly from here to close on a monthly basis above the ~$2,250 black level, the ~$1,720 will reveal weakness and may not support the price.”
In the event of a further price breakout, Rekt Capital indicated that the blue zone on the chart is the “next major support below ~$1,720”, which is located near $1,350.
Rebound from summer 2021 lows
The insight into what Ether price action may look like should it head lower was provided in the following tweet by ‘Crypto Feras’, who reflected that just a few weeks ago it sounded crazy to talk about Ether falling to these levels.
CryptoFeras said:
“Technically Ether is bouncing off its summer 2021 lows (outperforming Bitcoin so far). The bouncing zones are this [rango] of USD 1,700 – USD 1,800 or we will have to try [la] $1,400 area.”
Possible short-term retest of $1,550
A longer-term view of Ether’s price action was discussed by market analyst Caleb Franzen, who He suggested a “bearish” break below a major trend line.
franken said:
“It is very possible that we retest the highs of January 2018 around $1,550 in the next 24 hours. If/when we break below that old resistance level, it will be another bearish sign.”
The global cryptocurrency market capitalization now stands at $1.219 trillion and the Ether dominance ratio is 19.2%.
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