From the progress of Ethereum (ETH) price signs of weakness and uncertainty are still emerging. Currently, price at 2,997 USD and, on a monthly basis, in this first half of May it is negative by 0.60% despite the growth in the last 24 hours closing at +5.36% yesterday. However, it is still in retracement from the monthly high of $3,221, reached about ten days ago.
Ethereum struggles at the $3,000 area
The movement of recent weeks contributes to pushing the movement back annual performance of Ethereum at +32%. Self let’s compare its trend with that of Bitcoin, there is a strong difference in strength between the two, as BTC currently marks an increase of 55.80%.
Ethereum weaker than Bitcoin
In the monthly chart attached, we report the performance of Bitcoin and Ethereum, in which the greater weakness of the latter is clearly noted. During the rise of recent months, Ethereum failed to mark a new all-time high (ATH), stopping at the annual high of $4,095.
In this overview, we note that ETH is already in this retracement phase reached the first long-term support level in the $2,850 area, while that of BTC goes around $15,000 below the current price.
The graphic weakness of the price of Ethereum has a series of reasons, which we have highlighted in one our recent on-chain analysis which highlights drops in network usage. Furthermore, our editor-in-chief has produced an interesting analysis on the monetary policy of Ethereum and Bitcoin and on its potentially deflationary nature.
The situation on the weekly chart of Ethereum
To go into the details of the Ethereum situation, let’s start from weekly chart. In this overview, the bearish phase with the inclination of the trend that began after the annual high of 4,095 USD is clearly evident.
From the graph we can see that now for ten weeks one is forming series of decreasing maximumswhich led the price to test the first long-term support level a several times $2,850marking a low at $2,815 from where it then rebounded.
The tightness of the first support is fundamental
Further down the area 2,500 dollars, is located main support level. The two levels indicated are obtained using i Fibonacci retracements applied to the main carrier, starting from the low made in June 2022 at a price of $880, up to the recent annual high reached in March.
Currently, ETH is above major support by around 17%. A breakdown of this level would cause an interruption of the bullish trend underway since November, which materialized with the break of the $2900 level. The current descent is still classifiable as a major one bearish swing in an up trend.
The short-term scenario of Ethereum and resistances
On the daily chart of Ethereum, we can go into detail about the latest movements. On this view you can fully grasp how the price has tested the support area again between $2,850 and $2,815 after being rejected by resistance. In the analysis of April 30th we had highlighted the importance of the Ethereum resistance breakout:
.. first resistance short-term a $3,300.
Alex Lavarello – Professional trader and analyst of Criptocurrency.it
Looking at the chart you can see how the price stopped at this level and began to retrace, clearly continuing with a series of decreasing highs. At this stage it is important that ETH does not make new lower lows, because this would also lead to the breaking of the support0 area.
In this scenario, yesterday there was a ETH rebound of 5.60% which pushed the price towards the first very short resistance that passes at $3,050. Exceeding this level could lead to a rebound attempt of the price, with resistance – target at $3,300.
