Ethereum (ETH) has been facing challenges in maintaining its price above the crucial $3,000 support level. As the market navigates through a period of uncertainty, investors and traders are closely monitoring Ethereum’s performance to gauge its potential trajectory in the coming weeks and months.
Ethereum’s Struggle to Break Its Fall
According to a recent technical analysis by Rekt Capital, a prominent cryptocurrency analyst, Ethereum has been unable to break its fall on its current retrace. A few weeks ago, the analyst had discussed a scenario where ETH could reject from a blue circled area, which could then turn into new resistance.
In the latest analysis, Rekt Capital reveals that Ethereum has lost the black level as support and is now getting increasingly close to tapping the Range Low at $2,791 (orange circle).
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This development is particularly concerning as previous revisits to the orange circled Range Low occurred via downside wicks, whereas now, ETH is approaching this level with candle closes, indicating a weakening in the support strength of this region.
Potential Scenarios and Key EthereumSupport Levels
Moving forward, if Ethereum manages to rebound from its current position and turns the black level into new resistance, the chances of the orange circled level giving way as a support would be significantly high. This scenario could have serious implications for Ethereum’s price action in the near future.
Rekt Capital also highlights that Ethereum hasn’t lost the red level as support in years, making it a critical level to watch. The market’s reaction to this level could provide valuable insights into the cryptocurrency’s future price trajectory.
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The Importance of the $3,000 Psychological Level
On the monthly timeframe, Ethereum’s fate appears to hinge on one key level: the light blue psychological level of $3,000. In mid-2021, ETH managed to hold this level while downside wicking into the orange circled level before moving higher.
Last month, Ethereum was able to preserve the $3,000 level as support, but this month, it is slinking below it. However, it is important to note that a lot can still change until the end of May. The analyst emphasizes the importance of preventing $3,000 from turning into new resistance in the coming week or two, as this could significantly weigh down on the orange circled support.
Despite the current challenges faced by Ethereum, crypto experts remain cautiously optimistic about its performance in the near future. Based on the price fluctuations of Ethereum at the beginning of 2024, Changelly experts expect the average ETH rate to be around $2,949.34 in May 2024, with a minimum price of $2,895.59 and a maximum price of $3,003.09.
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