Analysts say ETH price must stay at this key level to avoid capitulation

Crypto markets experienced another day of pain on May 12 as the fallout from Terra’s LUNA and UST failures continued to ripple across the ecosystem.

While the coverage of UST and its impact on Bitcoin (bitcoin) has been widely reported over the past few days, and the pullback has also had a significant impact on the price of ether (Ethereum) due to traders rushing out of the market.

data from Cointelegraph Market Pro and Transaction view The sell-off in the past seven days showed ether falling to $1,701, its highest price since July 2021.

ETH/USDT 1-day chart. Source: TradingView

Here’s what several analysts have to say about Ethereum’s outlook, along with support and resistance levels to watch.

Ether needs to recover $2,250

Crypto analyst and pseudonymous Twitter user “Rekt Capital” recorded an overnight plunge to lows of $1,700, he post The chart below outlines the major support and resistance areas for Ethereum.

ETH/USD 1-month chart. Source: TradingView

Rekt Capital said:

“If ether does not bounce back strongly from here to close the month above the black level of around $2,250, around $1,720 will show weakness and may not be able to sustain the price.”

If prices fall further, Rekt Capital said the blue area on the chart is “the next major support level below $1,720,” near $1,350.

Rebound from summer 2021 lows

‘Crypto Feras’ provided insight into ether’s price action in the tweet below, and if it goes lower, he meditation Just a few weeks ago, it sounded crazy to talk about ether falling to these levels.

ETH/USDT 1-day chart. Source: TradingView

CryptoFerras said:

“Technically, ether is bouncing back from the summer 2021 lows (outperforming bitcoin so far). The rebound zone is $1,700 – $1,800 [range] or we [are] will have to test [the] $1,400 area. “

related: How long will the crypto bear market last? Macro Analysis by Raoul Pal

Possible short-term retest of $1,550

Market analyst Caleb Franzen discusses long-term views on ethereum’s price action, he Suggest A “bearish” breakdown below the major trendline.

ETH/USDT 1-week chart.Source: Twitter

Franzen said:

“We have a good chance of retesting the January 2018 high around $1,550 in the next 24 hours. If/when we break previous resistance, that’s another bearish signal.”

The overall cryptocurrency market cap currently stands at $1.219 trillion, with ether’s dominance rate of 19.2%.

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