Ethereum fell together with Bitcoin, and it traded below $2,000 in late May. Buying the dip on such aggressive weakness is not something for everyone, but so far, the dip hold. Moreover, the market forms a series of higher lows against horizontal resistance, suggesting a reversal pattern might be underway.
The $2,800 level is critical for the Ethereum price. Bulls may want to see a break and close above the $2,800 as a sign of the reversal pattern’s completion before going long.
The recent bounce from the lows came after Elon Musk, the CEO of Tesla, said that the company would start accepting Bitcoin as payment for car purchases once mining is done at least with 50% renewable energy. It is unclear why Musk will make such a statement after it slashed Bitcoin’s energy consumption one month ago, but voices argue that because of the end of the quarter comes closer, higher Bitcoin prices would help Tesla’s investment.
Make no mistake, Bitcoin did bounce back above $40k, triggering similar moves in Ethereum and other cryptocurrencies.
Ethereum Technical Analysis
Conservative bulls may want to wait for the Ethereum price to close above $2,800 before going long with a stop-loss order at the previous higher low and a take profit at $4,000.