• Ethereum price stalls at the tactically important 50-day simple moving average (SMA), but overall price structure remains constructive.
  • ETH consolidation is about releasing price compression generated by the sharp rebound from the May 23 lows.
  • A downside break in price will discover overwhelming support at the February 20 high at $2,042.

Ethereum price has not recovered the relative strength that dominated the April-May period, but the response to the largest weekly loss of 41.44% has been constructive. Until ETH can gain sustainable price traction above the 50-day SMA, Ethereum price will be clouded with investor skepticism.

Ethereum price struggles to separate from broader crypto weakness

Ethereum price rallied just over 50% from the May 19 low at $1,900 before printing a new correction low on May 23. The new low was followed by a 70% bounce at the May 26 high. A bullish hammer candlestick on the 12-hour ETH chart initiated the rebound on May 23, and it was accompanied by above-average volume after reaching an oversold reading on the daily Relative Strength Index (RSI). Moreover, the May 23 undercut of the May 19 low has put Ethereum price in place for a double bottom pattern with a trigger price of $3,000.

The consecutive quick rebounds have frustrated any bearish narrative and have built up price compression that needs to be released by removing the weak ETH holders through pullbacks, such as today. Once complete, Ethereum price will be unfettered to test the double bottom trigger price.

A breakout above the double bottom will quickly discover resistance at the 61.8% Fibonacci retracement of the May decline at $3,369. If the rally continues, Ethereum price will be introduced to minor resistance at the 78.6% retracement at $3,815 before launching an assault on the all-time high at $4,384.

ETH/USD daily chart

ETH/USD daily chart

An aggressive renewal of selling in the cryptocurrency complex may derail the relatively positive outlook for Ethereum price. The most crucial level of support is the February 20 high at $2,042, a price that has been resistance and support in April and May on an intra-day and closing basis.

If selling does not halt, the May 23 low will offer modest support, but the vital level is the strategically important 200-day SMA at $1,638. It should motivate prominent investors and institutions to begin accumulating in size.

Conveying a bullish message for Ethereum price is the Santiment Market Value Realized Value (MVRV) metric. The current metric reading is negative despite the 70% bounce in ETH, indicating that the smart contracts giant remains undervalued.

ETH MVRV metric

ETH MVRV metric

In April and May, Ethereum price displayed relative strength by assuming leadership for the entire crypto market. The underlying fundamentals driving that performance have not changed, and ETH is just beginning to capture the interest of institutional investors.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015

Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015

Shiba Inu's on-chain metrics reveal robust adoption, as addresses with balances surge to 1.4 million. Shiba Inu's returns stand at a solid 14.4% so far in April, poised to snap a three-month bearish trend from earlier this year. 

AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program

AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program

AI tokens, including Bittensor and Artificial Superintelligence Alliance, climbed this week, with ai16z still extending gains at the time of writing on Friday. The uptick in prices of AI tokens reflects a broader bullish sentiment across the cryptocurrency market. 

Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge 

Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge 

Bitcoin price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week. This week’s rally was supported by strong institutional demand, as US spot ETFs recorded a total inflow of $2.68 billion until Thursday.

XRP price could renew 25% breakout bid on surging institutional and retail adoption

XRP price could renew 25% breakout bid on surging institutional and retail adoption

Ripple price consolidates, trading at $2.18 at the time of writing on Friday, following mid-week gains to $2.30. The rejection from this weekly high led to the price of XRP dropping to the previous day’s low at $2.11, followed by a minor reversal.

Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge 

Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge 

Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.

Read full analysis
The Best brokers to trade EUR/USD

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.

Read More

BTC

ETH

XRP