HomePrice AnalysisEthereum Remains in a Bear Breakout Formation, ETH Ceiling at $2.2k

Ethereum Remains in a Bear Breakout Formation, ETH Ceiling at $2.2k

Ethereum prices are stable when writing. However, performance remains underwhelming, if not dismal, considering the general expectations amongst traders.

At spot rates, ETH is up four percent versus the USDT and still down double-digits in the last trading week, losing 14 percent.

The recovery from last week’s low could set precedence, allowing buyers to double down, slowing down the meltdown. In the immediate term, the primary focus should be the reaction at crucial resistance levels, mainly $2.2k and $2.5k. A close above this line may trigger demand, helping ETH bottom up.

Ethereum Co-Founder Contributes To the LUNA-UST Compensation Debate

The dump of ETH and other crypto assets is due to shifting macro conditions and tightening by central banks to tame rising inflation. Amid this, the de-pegging and consequent intervention by the LUNA Foundation Guard (LFG) by dumping BTC worsened the situation.

As of mid-May 2022, the algorithmic coin, UST, is still de-pegged, and LUNA has been shredded. The founder of Terraform Labs, Do Kwon, has been sued by victims in Singapore and could face charges if police investigations find him culpable.

Meanwhile, the discussion around compensating affected small wallet holders first, before whales, continues to dominate crypto forums. Ethereum co-founder Vitalik Buterin chimed in, saying priority should be on small retail traders.

“Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about “20% interest rates on the US dollar” by an influencer, personal responsibility, and SFYL [or sorry for your loss] for the wealthy.”

Ethereum Price Analysis

Ethereum

Ethereum is still under selling pressure at spot rates despite encouraging gains early this week. Albeit the expansion, ETHUSDT prices are still within a bear breakout formation and within the May 12 climax bear candlestick. This arrangement, therefore, currently favors sellers who are further buoyed by the relatively low trading volumes of May 13 to 17 bull bars.

From volume analysis, buyers stand a chance once there is a close above $2.2k. Before then, aggressive traders may find unloading opportunities in every attempt to clear $2.2k. Their immediate target would be at last week’s lows of $1.8k. Conversely, a high volume surge above $2.2k could draw buyers angling at March 2022 lows of $2.5k.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.


If you found this article interesting, here you can find more Ethereum News

Dalmas Ngetich
Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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