- Ethereum price action rebounds over 7% Thursday morning after the formal confirmation that Binance is pulling its takeover offer.
- ETH price action has some more upside potential and could print 13% gains intraday.
- Expect risk at a pivotal technical level that could set up a dead cat bounce.
Ethereum (ETH) price action is recovering this morning as bulls buy the dip. With the marker at $1,100 being hit overnight, buyers are adding Ethereum in their portfolios at the lowest price area in 2022. Add in the fact that the Relative Strength Index (RSI) has been hitting the oversold barrier on Wednesday, bulls should keep a close eye on $1,234 as it could cap price action and create a dead cat bounce.
ETH price action recovers but not fully declared healthy
Ethereum price action joined the other major cryptocurrency pairs in the massacre that followed on the back of Binance’s intent to take over the much-battered crypto exchange FTX. The meltdown on Tuesday was caused by the legal fact that the letter of intent was non-binding and thus gave Binance a jail-free card to walk away from the deal at any given time. Almost exactly 24 hours later, it did so, as it said the juice was not worth the squeeze. This triggered another 17% decline in ETH price.
ETH price action has been recovering this morning as the area where price action is residing at the moment is in the lower range of 2022. Bulls are eager to be part of the market here to buy at a discount, which could push price action back up toward $1,243. That level intersects with the low of February 1, 2021, and with the red descending trendline from September.
Risk at hand here is that bulls test that $1,243 level and fail to break its double resistance. Bears would use the level as an entry level and push price action back to the downside, making it a dead cat bounce. Ultimately, the low of Wednesday would be tested near $1,073, and ETH could see a smaller leg lower toward $1,014, which is a key level since June 15.
ETH/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Ethereum's comeback real?
Ethereum price hovers above $2,500 on Friday after soaring nearly 100% since early April's bottom. The ETH Pectra upgrade has boosted over 11,000 EIP-7702 authorizations in a week, indicating healthy uptake by wallets and dApps. The growing stablecoin usage and tokenization, Layer 2 institutionalization and ETH short unwind support the price rally.
Bitcoin Weekly Forecast: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand
Bitcoin price stabilizes around $103,000 on Friday after facing multiple rejections at the key $105,000 resistance level throughout the week. Risk-on sentiment prevails, driven by global trade deals, strong corporate accumulation, and spot ETF inflows.
EOS price climbs as sentiment improves following $3 million purchase by President Trump's World Liberty Financial
EOS price rebounds from short-term support at $0.75, boosting bullish sentiment amid broader market consolidation. President Donald Trump's World Liberty Financial purchases $3 million worth of EOS at an average price of $0.82.
FTX creditors set to receive over $5 billion in recovery plan payout handled by Kraken and BitGo
Defunct crypto exchange FTX will distribute $5 billion to holders of allowed claims starting May 30. Creditors with completed pre-distribution requirements will receive between 54% and 120% of their original claims.
Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand
Bitcoin (BTC) price stabilizes at around $103,000 when writing on Friday, after facing multiple rejections at the key $105,000 resistance level throughout the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.