Ethereum has lost key supports over the last seven days. Last week was one of the intraweek sessions many would love to forget for more reasons than one. The total REKT capital on derivatives market exceeded $3.5 billion during this period.
More than 70% of the liquidated funds were from long positions. According to Cryptocurrenciestowatch, ETH saw a low $1,700. This was due to a two-day retracement that started during the third intraday session.
Last Wednesday, ether lost more than 11% of its values as it retraced from $2,340 to as low as $2,000. The bulls were unable to recover from the dip, and as a result, the corrections extended to the next day.
It lost the $2,000 support on Thursday as a massive selling congestion saw the coin retest $1,700. Nonetheless, it experienced little uptrends that encourage a short push to $2,188 but closed the session with losses of up to 5.85%.
Following the corrections, the largest alt enjoyed a three-day hike, leading to questions as to whether the coin had attained its lowest for the year. To find answers to this question, let’s take a look at recent price movements.
Recent Price Movement
Since the downtrend began last month, ether has seen an average of three bearish days per week. Two of these red sessions are characterized by a more than 4% decrease. If this trend continues over the next two weeks, we may be sure of a new low.
However, it has been noted that the second-largest cryptocurrency has also seen a significant bullish push to retesting resistance. This may hinder any threat to the $1,700 support. We may conclude that it remains to be seen if the highlighted mark will be tested and flipped. To get a clearer understanding, we will look at its previous performance in May.
May is the Second Most Bullish Month
Based on the monthly performance chart for Ethereum, the asset sees a lot of uptrend during the fifth month of the year. However, the most recent state of the market has proved this year may be different.
On the 30-day scale, ETH is down by more than 25%. On average, the coin gains 40% every May, with a maximum increase of 184% and decrease of 13%. Could the reputation of the period under consideration positively affect prices and force a buyback?
It is important to note that since retracing to its lowest level last week, there has been no indication of an impending massive uptrend. Additionally, ethereum is subject to the general market sentiment which is bearish as of the time of writing.
This means that for ether to erase the incurred losses, the crypto market must experience increased buying conditions. Such circumstances will increase the probability of surge to $2,700.
However, based on last year’s performance, such an atmosphere is unlikely as the global cryptocurrency market cap failed to increase significantly after the first massive correction. Nonetheless, the sector saw minimal increases.
Source: Coinmarketcap
Putting this into perspective, we may conclude that a 10% increase from the current price of ether is probable. Does this mean ETH has bottomed out? Based on the crypto market performance, we may conclude that there is a chance of a retest of $1,700 support.
How low will Ethereum dip?
While many will argue that a retest of the said mark may be unlikely, it is important to turn to the charts for a clearer understanding as to the lowest price the largest alt may attain this year.
The ethereum futures chart hints a possible dip below $1,700. There is a CME gap between $1,600 and $1,500 that has not been filled since March 2022. We may see prices dip to the levels to fill the gap.
It is also important to note that there is no strong support after the current low. The next tough barrier is at $1,400, which suggests that a dip to this mark may take place.
