Analysts say Ethereum price must hold this key level to avoid a capitulation-level move
The crypto market experienced another day of pain on May 12 as the fallout from the Terra's LUNA and UST failure continues to ripple across the ecosystem.
While the coverage for UST and its impact on Bitcoin (BTC) have been extensively covered over the past few days, the pullback has also had a significant impact on the price of Ether (ETH) as traders hastily exited the market.
Data from Cointelegraph Markets Pro and TradingView shows that the past seven days of selling dropped Ether to $1,701, a price not seen since July 2021.
Here’s a look at what several analysts are saying about the outlook for Ethereum and what support and resistance levels to keep an eye on.
The overnight plunge to the low $1,700 range was documented by crypto analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart outlining the major support and resistance zones for Ether.
Rekt Capital said:
Should a further breakdown in price occur, Rekt Capital indicated that the blue zone on the chart is the “ next major support sub ~$1720,” which is located near $1,350.
Insight into what Ether's price action may look like should it head lower was provided in the following tweet by ‘Crypto Feras’, who mused that just a few weeks ago it sounded crazy to talk about Ether falling to these levels.
Crypto Feras said:
Related: How long will the crypto bear market last? Raoul Pal's macro analysis
A longer-term view of the Ether's price action was discussed by market analyst Caleb Franzen, who suggested that a “bearish” breakdown below a major trendline.
Franzen said:
The overall cryptocurrency market cap now stands at $1.219 trillion and Ether’s dominance rate is 19.2%.
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