At the time of writing, Ethereum is trading close to $3,115. Given Bitcoin’s subdued performance, Ethereum failed to overcome the all-time high of around $3,302. The next support level is now at $3,080 (green support area on the chart). If this threshold does not hold, a further decline to $2,940 could follow. The psychologically significant area around $3,000 is particularly important to keep an eye on. Here, at around $2,974, is the 200 EMA on the 4-hour chart, which could potentially act as support. Expect increased volatility this week given major US economic data, including the upcoming earnings season. The after-hours release of key quarterly earnings from companies like Amazon and AMD could have a profound impact on the S&P 500 and the Nasdaq.
The indicators point to a downside potential
Technical indicators signal continued downside potential. On the 4-hour chart, the MACD (Moving Average Convergence Divergence) has shown a “bearish cross” since April 29, 2024, indicating an increase in negative momentum.
The RSI (Relative Strength Index) is currently at around 37.6 points and is once again approaching the oversold zone. Further downward pressure cannot therefore be ruled out, which indicates that market makers may be influencing prices.
The VRVP (Visible Range Volume Profile) indicator shows a pronounced “minus distribution” (see first chart), extending from around $2,900 to $2,660. A fall for Ethereum into this zone from $2,900 could result in a volatile price move towards $2,600.
Bitcoin and the traditional markets as a guide for Ethereum
On the daily chart, Ethereum has reached the 100EMA. It is now crucial that buyers enter the market, otherwise the price could fall again to $3,000-$2,900. This scenario corresponds to the analysis in the 4-hour chart. Historical observations show that Ethereum has repeatedly found support in this price range. A key factor is the development of Bitcoin and the traditional markets, especially how they react to the “earnings season” and the upcoming interest rate decision on May 1st.
Over
Bastian Keller has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 36,500 subscribers.
In addition to his YouTube channel, he has already built a community with more than 4,000 active members. This offers both beginners and experienced traders the opportunity to improve their skills to a professional level. The focus is on operating profitably in the market in the long term, regardless of your location.
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