Ethereum (ETH) Price Analysis – May 7
Following the bullish reversal, a gradual rise-up has been playing out for the ETH/USD market as $180 resistance remains a solid level for the buyers to breach. A significant drop below 0.028BTC support may signal a false breakout for the ETH/BTC market. However, Ethereum markets need to surpass the immediate resistance level for bullish confirmation.
Resistance levels: $180, $190
Support levels: $160, $150
Since the price drop in earlier April which lasted to $148, Ethereum has made a U-turn following an ascending broadening wedge. After ETH opens long earlier today, the price was rejected at $180 resistance which has been a tough level for the bulls to surpass for over three weeks of trading.
Ether is now heading towards the lower wedge at $160 support after testing the tough level. As revealed on the indicator, both the RSI and the Stochastic RSI confirm a potential fall. More so, the market seemed to be gaining recovery with the recent price increase that hit the cryptocurrency.
Below the wedge, the sellers could locate support at $150 and beyond; positioning the ETH market in a bearish trend. Above the wedge, the buyers may eventually visit $190 after struggling to surpass $180.
Against Bitcoin, Ethereum managed to break-out from the descending trend line yesterday but later faced rejection at the 0.031BTC resistance level. Today, the market retests the break level of 0.029BTC level before a further rise which may revisit the previous resistance; reaching 0.033BTC resistance.
On the 4-hours RSI, ETH is sitting at the 50 level. If the RSI trend significantly below the 50 level, the market is likely to drop to the oversold condition. This may fall back the ETH/BTC market in a bearish zone; testing 0.028BTC support level. Below this support, the sellers may find another bottom around 0.027BTC level.
Viewing the 4-hour Stochastic RSI, selling pressure is aiming the oversold territory. In a short time, the sellers could pull the price low. This may lead to a false breakout in the market.
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