On 21 May, Ethereum registered another 12% decline, invalidating most of the recovery from 20 May. Currently priced below the $2500 range, a low of $2145 was registered a few hours back. With a market cap of $280 billion, Ethereum recorded a trading volume of $131 billion in the last 24-hours.
Ethereum 1-hour chart
After the drop on the 19th, Ethereum had briefly recovered to ~$3000 before collective rejection for the 50 period-Moving Average registered another correction. ETH busted below key support at $2620, and $2430, which are currently acting as resistance. While the asset did not drop down to the previous low of $1880, immediate support at $2100 was tested. At press time, Ethereum was witnessing another retracement from the support at $2430 but in the next few hours, it would be able to breach it.
The asset is expected to re-test the 50-Moving Average yet again, and re-test resistance at $2620.
Relative Strength Index or RSI is currently neutral on the 1-hour chart, but selling pressure is exhibiting another minor pullback before a surge. MACD is indicative of a bullish trend, as the price should gradually move forward in the next 24-48 hours.
Stochastic RSI indicated an overbought condition, which further validates the possibility of a short-term drop before the surge.
Resistance: $2620, $2430
Support: $2100, $1950
Entry Position for Long Trade: $2300-$2350
Stop Loss: $2200
Risk/Reward Ratio: 1.67x
Right now, Ethereum will possibly drop down to the range of $2300-$2200 before ascending towards a re-test of the resistance at $2620. 50-Moving Average should be breached, after triple continuous rejections. A long entry is feasible but stop loss should be minimal, as volatility may drag down price based on the overall trend.