Technical analysis for May 04: ether (ETH) preparing for a correction?

The second-largest crypto by capitalization turns green for this month. This rise should continue, but a major obstacle stands in its way. Is Ether (ETH) Bracing for a Slight Correction?

A short-term correction, in a bullish macro-structure

The FED’s decision brought less volatility to the crypto market than expected. The queen of cryptos saw only a slight rise to $29,000. As for ether (ETH), its value crosses the opening price of the month and goes into the green. On a long-term perspective, we see that the crypto ETH is stabilizing in the price range of $1965 and $1791. A weekly close in the green is possible, but resistance around $2020 could hold the price back. Then, analysts believe that a correction is imminent on the bitcoin (BTC). Therefore, it could be that Ether (ETH) is also preparing for a correction. If this is confirmed, we can see ETH below $1686 before the monthly close.

ether fix
Ether (ETH) candlestick chart, Daily scale – source: TradingView

However, the March 2023 low will need to remain intact to keep the bullish structure long term. Which is quite likely since the Ethereum network token is becoming more and more popular with the Shanghai upgrade. Thus, one could envisage a correction below $1686, but lower than $1370. The target for this correction could be placed around $1600, which could act as major support.

Ether (ETH) towards a weekly close in the green?

Since Monday’s low, ETH is up 5% up to the time of this writing. This rise should continue with the bullish setup on the current price. In this case, we could envisage a weekly close in the green for ether (ETH). Short-term crypto traders can take advantage of this with a long position from $1872. The target being the $2020 hurdle which could initiate a correction towards $1600.

ether fix
Ether (ETH) candlestick chart, H2 scale – source: TradingView

However, if the price shows no bearish reaction to this resistance, the bearish thesis will be invalid. After all, ether (ETH) remains one of the “favorite” cryptocurrencies for the next bull-run.

Admission: $1,872;

Stop: $1,841;

Goal: $2,029.

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