Technical Analysis for ETHUSD for 11th May 2022
Ethereum Dumps to Retest Q1 2022 Lows, ETH Finds Resistance at $2.5k
Past Performance of ETH
Ethereum is deep in red like most crypto assets. When writing, ETH is up four percent in the past trading day but is down 16 percent week-to-date versus the USDT. There are encouraging recoveries at spot rates. However, this is not enough to dissuade holders who were pummeled on May 9 following the sharp dump that saw ETH plunge to as low as $2.1k.
Ethereum Technical Analysis
ETH prices bounced off from Q1 2022 lows, coinciding with the 78.6 percent Fibonacci retracement level of the H2 2021 trade range. While the rejection of lower prices on May 10 could be a net positive, sellers are still in control in the immediate term. Therefore, since ETHUSDT is in a bear breakout formation and $2.5k is a strong resistance level, sellers can liquidate on any attempt to retest this line. Cautious, risk-averse traders can wait for confirmation below $2.2k—this week's lows—before unloading, targeting $1.8k in the medium term. On the flip side, any surge above $2.5k invalidates the bear run, confirming May 9 bear bar as climactic.
What to Expect from ETH
Sellers are in a commanding position. However, Ethereum's ecosystem is activity and dApp dense. ETH may recover, bouncing off from $2.2k once bulls satisfactorily rewind losses of May 9.
Resistance level to watch: $2.5k
Support level to watch: $2.2k
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