The second crypto by capitalization starts the week in the red. If Ether (ETH) breaks through this slanting support, it could take a major drop towards $1680. Incidentally, the short-term downtrend has deepened since the weekend as Binance faces massive pullbacks.
Ether (ETH) is down 8% since Saturday
The second crypto by capitalization suffered an 8% drop since the weekend. Its value is currently on an oblique support zone that has formed since March 27th. After hitting a high of $2138 in mid-April, ether (ETH) underwent a correction that saw it drop to $1791. After that, the price goes back up before hitting the resistance around $2000. These movements allowed the May 04 buy position to close in the green. Then, the recent weekend decline took it back towards the slanting support at $1840.
If the price breaks through this support, it could drive Ether (ETH) lower below $1686. However, if the bulls manage to hold ETH above $1840, it could pave the way for another bullish push. This will be possible provided that the psychological resistance of $2000 is exceeded. This breakout would allow ETH to break above the $2100 level and aim for $2500.
Short-term outlook
ETH can keep the support around $1840 intact. A sharp weekly close above $2000 could thus allow further upside. However, the decline in Ether (ETH) may continue given the massive drawdowns on Binance. Indeed, the exchange lost ⅓ of all its BTC in 24 hours. This could thus add downward pressure on ETH.
In this case, if this crypto closes today’s session below $1840, it could signal a larger downtrend. If this scenario is confirmed on ether (ETH), we could take a sell position at $1987.
Admission: $1,987;
Stop: $2023;
Goal: $1686.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
