ETH price bounced off a major support level, and while $2,000 could be a short-term target, most analysts say it’s just a “relief rally.”
On May 30, the cryptocurrency market experienced a much-needed bounce that saw Bitcoin (BTC) climb above $30,900 and Ether (ETH) rally 5.84% to $1,930, but analysts warn that it could be too early to expect a reversal.
Here’s a look at what several analysts are saying about the outlook for Ether moving forward and the major support and resistance levels to keep an eye on.
A bounce off of major support
The May 30 bounce in Ether came as “no surprise” to market analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart, stating that “It’s more about how much #ETH will move from here.”
Rekt Capital said:
“Technically, #Ethereum could rally to as high as ~$2269 to flip it into new resistance. General gist is that whatever this rally turns into, it will likely be weaker than mid-2021.”
Possible recovery to $2,700
Insight into the possible price trajectories for Ether was offered by crypto trader Ace of Alts, who posted the following chart showing ETH “currently holding the range lows again for the 4th time.”
Ace of Alts said:
“IF we manage to hold this on the 3D I could see a bounce to the $2,700 region over summer. This area will most likely act as another LH [lower high] in the down trend. However, the R/R [risk/reward] is very good around this level.”
Related: Market-cleansing bear cycles are healthy, say industry experts
Looking for “one more leg down”
While the bounce in Ether price was a welcome sight to traders, Crypto Tony offered a word of caution, posting the following chart and warning to “never lose sight of the bigger picture.”
Crypto Tony said:
“Yes things are looking nice at the moment, but to me this is simply a relief rally. We have no broken market structure on the time frame and until proven otherwise I am still looking for one more leg down.”
Based on the chart provided, another leg down has the potential to drop the price of Ether into the $1,500 range.
The overall cryptocurrency market capitalization now stands at $1.271 trillion, and Bitcoin’s dominance rate is 45.9%.
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