Traders say Ethereum needs a monthly close above $2,250 to regain bullish momentum, but a bearish technical analysis pattern on the weekly timeframe threatens to push ETH price to fresh lows first.
Cryptocurrency markets remain volatile, and a handful of seasoned traders believe the bearish trend will continue as long as stock markets are chasing fresh lows.
Most investors will agree that crypto is currently in a bear market, and the current price action of Bitcoin (BTC) and Ethereum (ETH) suggests capitulation and consolidation are a long way off.
Data from Cointelegraph Markets Pro and TradingView shows that Ethereum is still trying to reclaim the $2,000 level as support and the zone has been notable support and resistance since February 2021.
ETH/USDT 1-day chart. Source: Trade View
Ethereum needs a monthly close above $2,250.
Understanding the major support level that Ether needs to pass by month-end to restore the bullish outlook was raised by market analyst and Twitter user Rekt Capital, who posted the chart below showing that the $2269 area is a key level .
3-day ETH/USD chart. Source: Twitter
Rekt Capital said:
“ETH is climbing ever closer to a key ~$2,250 level. The main question is whether this monthly level will turn into new resistance once reached.”
Traders target $1,650.
The possibility of a break above the current support level has been shown in the chart below, posted by crypto trader and Twitter user aka Crypto Tony, who is “expecting another drop into overbought territory” where he hopes to fill several orders too be able.
Three-day ETH/USDT chart. Source: Twitter
Crypto Tony said:
“This move will be necessary to create liquidity that pushes us into a corrective wave. From there we will see how it happens.”
See also: “Huge Testing Milestone” for Ethereum: Ropsten Testnet Merge Set for June 8th
The structure of the head and shoulders of the ether is complete.
A potentially bearish sign appeared with the completion of the head and shoulders pattern on the weekly chart, a point highlighted on the following chart published by CryptoCharts.
Weekly ETH/USD chart. Source: Twitter
“Given the recent sideways market for cryptocurrencies, we can clearly define this as if it is a bounce or a break in dedicated support. Here I will be on the lookout for a breakout in the near term otherwise a reverse breakout from the current support will take the price to the next support formed around $1,300. Each bounce will keep going up to $2,450.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.