Analysts Say Ethereum Price Needs To Hold This Key Level To Avoid A Capitulation-Type Move

The crypto market experienced another day of pain on May 12 as the fallout from the failure of Terra’s LUNA and UST continues to ripple t...

The crypto market experienced another day of pain on May 12 as the fallout from the failure of Terra’s LUNA and UST continues to ripple through the ecosystem.

While UST coverage and its impact on Bitcoin (BTC) have been largely hedged in recent days, the pullback also had a significant impact on the price of Ether (ETH) as traders rushed out of the market.

Data from Cointelegraph Markets Pro and TradingView shows that the last seven days of selling have caused Ether to fall to $1,701, a price not seen since July 2021.

ETH/USDT 1-day chart. Source: Trading View

Here’s a look at what several analysts are saying about Ethereum’s outlook and the support and resistance levels to watch.

Ether needs to recover $2,250

The overnight plunge into the low $1,700 range was documented by crypto analyst and pseudonymous Twitter user “Rekt Capital”, who post the following chart outlining the major support and resistance areas for Ether.

ETH/USD 1 month chart. Source: Trading View

Rekt Capital said:

“If Ether is unable to rebound strongly from here to close monthly above the black level of ~$2,250 above, ~$1,720 will show weakness and may not sustain the price.”

Should a further price breakdown occur, Rekt Capital has indicated that the blue area on the chart is the “next major support below ~$1720,” which sits near $1350.

Bouncing off the 2021 summer lows

A glimpse of what Ether’s price action might look like if it were to drop was provided in the following tweet from ‘Crypto Feras’, which reflexive that just a few weeks ago it seemed crazy to talk about Ether falling to these levels.

ETH/USDT 1-day chart. Source: Trading View

Crypto Feras said:

“Technically, Ether is bouncing off its summer 2021 lows (outperforming Bitcoin so far). The bounce zones are either those $1,700 – $1,800 [range] or U.S [are] will have to test [the] $1,400 area.

Related: How long will the crypto bear market last? Raoul Pal’s macro analysis

Possible short-term retest of $1,550

A longer-term view of Ether’s price action was discussed by market analyst Caleb Franzen, who suggested than a “bearish” breakdown below a major trendline.

ETH/USDT 1 week chart. Source: Twitter

Franzen said:

“It is very possible that we will retest the January 2018 highs around $1,550 in the next 24 hours. If/when we break below this former resistance level, that is another bearish signal.

The overall cryptocurrency market capitalization now stands at $1.219 trillion and Ether’s dominance rate is 19.2%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.