Is An Inevitable Crash To $1700 Imminent For Ethereum ($ETH) Price?

Crypto prices surprised investors with a quick uptick on Sunday, but it remains to be seen whether it is the beginning of a sustained recovery or just late buyers entering the market. As a result, Bitcoin (BTC) and Ethereum (ETH) are leading the gains on Monday among the top-cap non-stablecoin cryptocurrencies.

Bitcoin, the largest cryptocurrency by market capitalization, rose as much as 6.23% over the last day to trade above the $28,000 psychological level. It now trades at $27,907, up 2.66% over the last 24 hours and its market capitalization has reached $541 billion, according to data from CoinMarketCap.  

Ethereum is the biggest gainer among the top cryptos by market value, rising 3% over the last 24 hours to trade at $1,902. This points to increased investor interest in the proof-of-stake (PoS) token, suggesting that it would be among the best performers once the crypto market enters a recovery phase.

Top 10 Cryptos

The overall crypto market value is now standing at $1.16 trillion, after increasing 2.08% over the last day. While it is not clear what the cause of the uptick is, Santiment acknowledges the sudden surge in crypto prices saying  “Social volume is up for almost all assets.”

? In the midst of #MemorialDayWeekend for the US, #crypto has enjoyed a quick resurgence. #Bitcoin has reclaimed the $28.2k price level, & #Ethereum is back to $1,915. #Fantasygold is the major story, now up +948% in the past week. Social volume is up for almost all assets. pic.twitter.com/3QkTOGnGd0

— Santiment (@santimentfeed) May 29, 2023

Despite this bullish movement, the bearish outlook explained in previous articles is still valid for major cryptos.

Ethereum needs to stay above the 50 SMA

Ether’s price shot up 6% over the weekend to overcome the $1,850 hurdle, embraced by the downtrend line of a descending triangle. At the time of writing, ETH trades at $1,902 but needs to hold above the 50-day Simple Moving Average (SMA) currently sitting at $1,885, to secure the upside. 

If this happens, Ethereum bulls could eye retesting the $2,000 psychological level, followed by a sweep of the liquidity above it to tag the April 16 range high at $2,142. 

ETH/USD Daily Chart

Supporting this bullish outlook for Ethereum was the upward movement of the Moving Average Convergence Divergence (MACD) indicator with the call to buy Ethereum, which was sent on May 22 still in play. This suggested that the market conditions still favored the upside. 

In addition, the Relative Strength Index (RSI) was positioned in the positive region. Its value at 58 above the midline implied that there were more ETH buyers than sellers in the market. These bulls were determined to push the price higher.

On the downside, a daily candlestick close below the 50-day SMA would push Ether’s price back into the confines of the bearish triangle, with the 100-day SMA at $1,793 providing support.

A drop below this level would confirm the descending triangle chart pattern projecting losses first toward the $1,700 psychological level and later to the 200-day SMA at $1,580. 

In highly bearish cases, Ethereum would breach the said level, dropping below the $1,550 major support level toward the bearish target of the governing chart pattern at $1,510. This would represent a 20% drop from the current price.

Promising alternatives to ETH

Investors looking to place their long bets on Bitcoin would have to wait for a decisive close above the $2,000 psychological level. Unfortunately, there is no telling when this could happen. 

Therefore, investors are looking for new cryptocurrency in presale with the purpose of diversifying their portfolios. Once such crypto is Ecoterra, an innovative green project that gives users an opportunity to earn while protecting the environment.

$ECOTERRA is boasting over $4.4 million in funds raised in its ongoing presale. ECOTERRA is the utility token and primary currency of the revolutionary recycle-to-earn (R2E) project, Ecoterra.

The project encourages individuals and companies to participate in environmentally friendly activities while rewarding them with its native crypto token, ECOTERRA.

The project’s R2E app enables users to scan recyclable items and utility bills for carbon offsets, purchase products of recycled items, and an impact profile tracking to monitor users’ eco-friendly activities. 

$ECOTERRA’s presale price is currently $0.0085 and will increase to $0.00925 in the next few days. After the presale, the token will list for $0.01 on several exchanges.

Visit Ecoterra here for more details on how to participate in the presale. 

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