ETH Technical Analysis: The Critical Point Of $1700
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Sellers were unable to update the local low during the trading week on 16 May. This is a good sign to start the reversal with the first target of $2600. If you think that ETH is not the same as before and the prospect of its growth and impact on the cryptocurrency market is less significant - analyze how other cryptocurrencies have fallen. Few have been able to maintain local lows since May 2021. The fact that ETH has been able to do so shows its importance to investors.
However, it should not be forgotten that the price of ETH broke the trend line, which buyers have held since March 2021. Therefore, the mark of $ 2600 may contain hidden aggression of sellers, which is immediately activated in the test mark. In this case, if buyers are able to keep the mark of $2100, we will expect to continue to form a local wave of growth with the final target of $3700. The nature of the price increase will make it clear whether buyers have enough strength to update the historical high.
ETH Technical Analysis On The Daily Timeframe
Analyzing the movement of the ETH price on the daily timeframe, we see a decrease in trading volumes during the price increase on 19 May. This is not the best signal of the strength of buyers. The critical point for continued growth is the local mark of $1950. If sellers can take control of this mark, the initiative will pass to them completely.
In this case, you can expect the wave to fall to the mark of $1700. The first problem for buyers is the $2160 mark. Having broken this mark up, buyers can expect to continue to grow with the first target of $2340. If sellers arrange a local correction to the $2160 mark, there will be a chance to buy ETH with low-risk. The final target of ETH growth for one impulse is $2343. Buyers were able to take this mark on 10 May. And the trading volumes then were much higher than now.
ETHBTC Price Movement
The weekly timeframe of the ETH price movement shows a slowdown in the price fall from April 2021. During the trading week of 16 May, trading volumes were slightly lower than the week before. Although sellers were able to update the local low, the weekly candle looks rather insignificant. All because buyers slowed down the fall in the ETHBTC price limit orders.
This fact allows us to predict a price rebound at least to the range of 0.078. In this range, we would record at least part of the purchased ETH, because the risk of continuing to fall with the update of the local low and the test mark of 0.058 is quite high.