Ethereum Price Nears $2,000, But Analysts Say It’s Just Another ‘Relief Rally’
Ethereum prices are rebounding from major support levels, and while $2,000 may be a short-term target, most analysts say this is just a “relief rally.
The cryptocurrency market experienced a much-needed rally on May 30, with bitcoin (BTC) climbing above $30,900 and Ethereum (ETH) rising 5.84% to $1,930, but analysts warn that it may be too early to predict a reversal.
Here’s a look at what several analysts are saying about the outlook for Ether moving forward and the major support and resistance levels to keep an eye on.
Major Support Rally of Ethereum
The May 30 bounce in Ether came as “no surprise” to market analyst and pseudonymous Twitter user Rekt Capital, who stated that “It’s more about how much #ETH will move from here.”
Rekt Capital said:
“Technically, #Ethereum could rally to as high as ~$2269 to flip it into new resistance. General gist is that whatever this rally turns into, it will likely be weaker than mid-2021.”
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Potential to Recover to $2,700
Insight into the possible price trajectories for Ether was offered by crypto trader Ace of Alts, who believes “currently holding the range lows again for the 4th time.”
Ace of Alts said:
“IF we manage to hold this on the 3D I could see a bounce to the $2,700 region over summer. This area will most likely act as another LH [lower high] in the down trend. However, the R/R [risk/reward] is very good around this level.”
While the bounce in Ether price was a welcome sight to traders, Crypto Tony offered a word of caution, warning to “never lose sight of the bigger picture.”
Crypto Tony said:
“Yes things are looking nice at the moment, but to me this is simply a relief rally. We have no broken market structure on the time frame and until proven otherwise I am still looking for one more leg down.”
Another decline is likely to bring Ether’s price down to within the $1,500 range.
The overall cryptocurrency market cap currently stands at $1.271 trillion, with Bitcoin dominating at 45.9%.