Traders identified key support and resistance levels for Ethereum.
Image source: cointelegraph
The crypto markets had another day of pain on May 12 as the collapse of Terra’s LUNA and UST rippled through the ecosystem.
The impact on UST and its markets has been covered extensively by major media outlets, and has had a major impact on the price of Ethereum ( ETH ) as traders rushed to sell off the overall market.
The seven-day decline took ETH to $1,701, the biggest drop since July 2021, according to TradingView.
ETH/USDT daily chart. Source: TradingView
Here's what a few analysts have to say about ETH's trend, and which support and resistance levels to watch.
ETH needs to get back above $2,250
Crypto analyst Twitter user "Rekt Capital," who documented the overnight plunge to as low as $1,700, posted the following chart outlining ethereum's major support and resistance areas.
ETH/USD monthly chart. Source: TradingView
Rekt Capital says:
“If ETH fails to rebound strongly from here to achieve a monthly close above the black line around $2,250, it will show weakness and may continue to fall in the short term.”
Rekt Capital said: If the price falls further, the blue area on the chart is "the next major support around $1,350.
Rebound from 2021 summer lows
Analyst “Crypto Feras” provided insight into Ether’s price action in the tweet below, arguing that just a few weeks ago it seemed unrealistic to talk about ETH possibly falling to this level, but it’s already on the trend.
ETH/USDT daily chart. Source: TradingView
Crypto Feras says:
“Technically ETH is bouncing off its summer 2021 bottom (outperforming Bitcoin so far). The rebound area is either in the $2300 [range] or we will have to test the $1400 support area .”
A possible retest of $1,550 in the short term
Market analyst Caleb Franzen discusses his long-term view on ethereum price action, which he sees as a "bearish" trend below a major trendline.
ETH/USDT weekly chart. Source: Twitter
Franzen said:
"We are very likely to retest the January 2018 peak around $1,550 in the short term. If it falls below again, it will continue the downward trend and continue to look for support."
As of press time, the total market capitalization of the crypto market: 1.219 trillion U.S. dollars, with ETH accounting for 19.2% of the market capitalization.