• Ethereum price tanked 6% on Monday and started the week on the backfoot.
  • ETH sees bulls stepping in at a vital moving average.
  • The intersection area ahead creates an ideal moment for a break and leg up above $2,000.

Ethereum (ETH) price sees bulls coming in and scooping up some ETH at a nice discount. From a purely technical point of view, the decline in Ethereum price action makes sense as it was overheated since the beginning of April and a cooldown was needed. With traders eagerly buying around the 55-day Simple Moving Average (SMA), just one element is standing in between them and ETH popping back above $2,000.

Ethereum price proof that every athlete needs a cooldown 

Ethereum price action on the 4-hour chart has a lot of comparisons with an athlete getting ready for the Olympics. After quite the staggering rally from March all the way up to mid-April, a cooldown was more than welcome. The Relative Strength Index (RSI) clearly indicated that bulls have been going in the red, and the RSI started to show signs of overwrought buying. 

ETH taking a step back was no surprise, certainly with all the turmoil regarding legal replications in court rulings. The 55-day SMA has proven to be very important on April 27 and March 16– two dates when it provided ample support and a reboot to the rally. One hurdle stands in the way of bulls, and that is around $1,930, where the current cap and a pivot level fall in line. A break above would offer room to rally toward $2,150.

    ETH/USD  4H-chart    

ETH/USD  4H-chart    

One could argue if the global market turmoil has any impact on cryptocurrencies. Considering that First Republic Bank had to be bailed out on Monday and that U.S. Treasury Secretary Janet Yellen warned that the debt ceiling would be hit by June 1st, one can imagine that current market conditions are unfavorable for risk on a trade. Expect to see possible another leg lower to find better support near $1,688. This means still another 10% decline.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP