Ethereum Loses $2,717 Support and Bears Target $2,491 Low

May 06, 2022 at 11:04 // Price
Coin Idol
Selling pressure has picked up again

The Ethereum price (ETH) is in a downtrend as the bears have undercut the current support at $2,717.

Ethereum Price Long-Term Analysis: Bearish

Yesterday, the Ether price fell to the low of $2.688, but the bulls bought the dips. Today, selling pressure has picked up again as sellers try to push the largest altcoin to the previous low. Since May 5, Ether has been in a downward movement as buyers failed to overcome the $2,951 resistance. Ether rallied to the high of $2,965 but was pushed back. The bears are trying to break the current support at $2,717. If the bears break the current support to the downside, the market will fall back to the previous low at $2,491. On the upside, if the bulls break above the moving averages, the altcoin will rise to the high of $3,200. Meanwhile, Ether falls and reaches the low of $2,735.

Ethereum Indicator Analysis 

Due to the recent decline, Ether has fallen to level 41 of the Relative Strength Index for the period 14. The largest altcoin is in a downtrend and below the midline 50. The downtrend will continue if Ether loses the current support at $2,717. The 21-day line SMA crosses below the 50-day line SMA, indicating a sell order. The altcoin is below the 20% area of the daily stochastics. Ether has fallen back into the oversold area of the market.

ETHUSD(Daily Chart) - April 6.png

Technical Indicators: 

Key resistance levels - $4,500 and $5,000

Key support levels - $3,500 and $3,000

What is the next direction for Ethereum? 

Ether is likely to fall further as it faces rejection at the high of $2,965. Currently, the altcoin has fallen to the low of $2,735.50 when we wrote this article. Selling pressure will intensify if support at $2,717 is breached. Meanwhile, the downtrend from April 18 has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that ETH will fall to the 2.0 Fibonacci extension level or $2,444. 85

ETHUSD(Daily Chart 2) - April 6.png

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.

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