Ethereum Price Analysis for May 21, 2024
1. Price Trend:
Ethereum’s price formed support and broke through the $3,200 resistance level. With the recent actions of the U.S. Securities and Exchange Commission (SEC), there is increased hope for an Ethereum ETF. Traders capitalized on the recent movement, leading to a strong breakout above the $3,350 resistance level, outperforming Bitcoin with a surge of over 20%. Ethereum broke through many obstacles, even strongly surpassing the $3,500 resistance level. A new weekly high was formed at $3,721, and the price is consolidating its gains, currently trading above $3,600 and the 100-hour simple moving average. Unless it breaks below the $3,400 support level, Ethereum is likely to continue rising.
2. Potential Upside Opportunities:
Ethereum faces direct resistance near $3,700. The first major resistance is around $3,720; breaking this resistance could push the price higher. The next key resistance is at $3,800; surpassing this level could drive the price to the $3,880 level. If it clearly breaks above $3,880, the price might rise and test the $3,950 resistance, and it could even push towards the $4,000 resistance level.
3. Potential Downside Risks:
If Ethereum fails to break the $3,720 resistance, the initial support on the downside is near the $3,640 level. The next major support is around the $3,600 area. A clear break below the $3,600 support could push the price towards $3,500, and it might even lead to a short-term decline to the $3,400 level.
4. Technical Indicators:
Hourly MACD — The MACD for ETH/USD is currently losing momentum in the bullish zone, indicating that the bullish momentum in the market is weakening and may signal a trend reversal.
Hourly RSI — The RSI for ETH/USD is currently correcting from the 85 region, suggesting that the market might face pullback pressure, and selling strength may be increasing.
Resistance levels:
First resistance: 3720
Second resistance: 3800
Support levels:
First support: 3640
Second support: 3600
Trading direction: Long
Entry position: 3640–3620
Stop loss: 3570
Take profit: 3750–3780
Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.
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