The month of May was a corrective month for the cryptocurrency market. Ethereum (ETH) bounced off its major support level, and is looking to break resistance. As of press time, ETH/BTC trading pair is trading at 0.0769 ETH/BTC and the ETH/USD trading pair is trading at $583.
ETH/BTC Trading Pair
After a strong bull run during the month of April, which propelled ETH price over Bitcoin from 0.054 BTC to 0.085 BTC levels, Ethereum had a corrective move that pulled price back to 0.07 support level.
Looking at the chart, it seems that an upward trend of support level has formed. Using the Fibonacci Retracement tool, Ethereum shows strong support level at 0.07 BTC and the 0.5 Fibonacci Level. This is a good indicator that Ethereum is gaining upward momentum over Bitcoin.
On the other hand, Ethereum is still trading on a greater downward trend with strong resistance at 0.085 BTC level and the 0.382 Fibonacci Level.
With more trade volumes in the coming days, Ethereum could look to break the resistance level at 0.085 BTC before resuming an upward price action toward new highs.
ETH/USD Trading Pair
On the ETH/USD trading pair, Ethereum seems to have bounced off the $500 level after plummeting from the $840 level during the entire month of May. We are seeing very strong resistance around the 0.5 Fibonacci Level, which coincidentally lines up with resistance levels last December 2017 and March 2018.
Because of strong volume and FOMO during December 2017, price was able to shoot up and reach the all-time high for Ethereum price. During mid-March, however, volume decreased, and price plummeted back to the $355 mark.
As of the moment, ETH/USD is trading just below the 0.5 Fibonacci Level and $600 major resistance line. ETH will need a lot of trading volume to break this resistance in order to target the higher resistance level at the 0.236 Fibonacci Level, which is the $725 mark.
Summary of Key Points:
- Ethereum bounced off major support line at 0.07 BTC and $500 levels.
- 5 Fibonacci Level is acting as major support for ETH/BTC trading pair and major resistance for ETH/USD trading pair.
- Strong resistance for Ethereum at 0.085 BTC and $600 levels.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)
