Ethereum fell in price on Monday due to weakening indicators of momentum and a slowdown in institutional accumulation. This raised concern that ETH may retest ETH’s key $2,200 zone support.
The following is a summary of the information that you will find on this page.
- Ethereum’s price has formed a divergence in the RSI near the resistance level of $2,400, which raises the risk that the support zone at $2,200 will be tested again.
- Ethereum whale wallets accumulated approximately 360,000 ETH in the last correction. Bitmine, however, has slowed its purchases due to reaching their supply target.
- Tom Lee of Fundstrat said “Crypto Spring has commenced” As ETH held above its ascending trendline of long-term support.
According to crypto.news data, Ethereum (ETHAt the time of publication on May 12, price had fallen to $2,288 after it failed to maintain recent gains. The token lost its momentum in recent sessions, despite the strength of the crypto market earlier this week.
The RSI indicator is showing a bearish divergence. This could be viewed as one of the major warning signs on the chart. While Ethereum has continued to form slightly higher highs in the past few months, the RSI indicator has consistently printed lower highs during the same time frame, which is often a warning sign that the bullish trend may be waning.
After months of aggressive purchasing, the recent decline in institutional buying is also a sign that things are slowing down.
In recent on-chain data, Ethereum whale wallets (excluding exchanges) increased their holdings during the correction phase from approximately 124.69 to almost 125.05 millions ETH. This represents an accumulation of about 360,000 ETH.
In recent weeks the buying pace appears to have slowed as many large holders became more cautious at the current price level.
Bitmine is also a cryptocurrency. reportedly slowed down its ETH acquisition pace, as it is 86% towards its goal of holding 5% Ethereum’s circulating stock. This reduces the need to make aggressive purchases in the near term.
Some market analysts are still optimistic about Ethereum’s long-term prospects despite the recent decline. Tom Lee of Fundstrat recently stated You can also find out more about us here. “Crypto Spring has commenced,” Investor sentiment is unusually negative, even though crypto prices are continuing to recover.
Ethereum is still trading over an ascending trendline on the daily chart. This has been in place since March. However, price has repeatedly failed to break above the broader resistance zone near $2,400–$2,450, where sellers continue defending upside momentum aggressively.
The chart shows a divergence between the RSI and price, which indicates that buying pressure has gradually weakened as ETH tried to stabilize at local highs.
While the MACD continues to show fading red bars after the completion of a negative cross-over, it may indicate that momentum is building on the downside.
Ethereum may retest its ascending trendline support near $2,200 if the selling pressure continues to increase. A breakdown of that level would expose ETH’s further downside towards $2,000, the psychological support zone.
To invalidate the setup, the bulls will need to claim the resistance level of $2,400. This could reopen a path to the next major support near $2,600.
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Source: crypto.news
