The crypto market endured another painful day on May 12 as the fallout from the failures of Terra (LUNA) and TerraUSD (UST) continued to spread across the ecosystem.
While there has been extensive coverage of UST and its impact on Bitcoin (BTC) over the past few days, the pullback also had a significant impact on Ether (ETH) price as traders hastily exited the market.
Data from Cointelegraph Markets Pro and TradingView shows Ethereum falling to $1,701 over the past seven days of selling, a price not seen since July 2021.
Here’s a look at what several analysts are saying about the outlook for Ether and what support and resistance levels to watch.
Ether needs to reclaim $2,250
The overnight plunge to the low $1,700 area was documented by crypto analyst and pseudonymous Twitter user Rekt Capital, who sent The chart below shows the key support and resistance zones for Ether.
Rekt Capital said:
“If Ether is unable to rally strongly from here to take the month close above the ~$2,250 black level, the ~$1,720 will show weakness and the price may not hold.”
Should there be another price drop, Rekt Capital stated that the blue zone on the chart is the “next major support below ~$1720”, located near $1,350.
Bouncing off the 2021 summer lows
A glimpse of what Ether’s price action could look like should it head lower was provided in the following tweet by Crypto Feras, who pondered that just a few weeks ago it sounded crazy to be talking about Ether falling to these levels.
Crypto Feras said:
“Technically, Ether is bouncing off its 2021 summer lows (better than Bitcoin so far). The bounce ranges are either this $1,700 – $1,800 [range] or we [are] will have to test [the] $1,400 zone.”
Related: How long will the crypto bear market last? Macro analysis by Raoul Pal
Possible short-term retest of $1,550
A longer-term view of Ethereum price action was discussed by market analyst Caleb Franzen, who recommended that it is a “bearish” breakdown below a major trendline.
“There’s a good chance we’ll retest the January 2018 highs around $1,550 in the next 24 hours. If/when we break below this former resistance level, that will be another bearish signal.”
The total cryptocurrency market cap is now $1.219 trillion and Ether’s dominance rate is 19.2%.
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