Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ETH fell below the 50-EMA but was controlled by 100-EMA.
- A positive CVD spot could give bulls some hope.
The second largest digital asset by market capitalization, Ethereum [ETH]is more resilient to the current strong macro headwinds than Bitcoin [BTC]. For perspective, according to CoinMarketCap, ETH’s weekly loss was around 5% at the time of writing.
Is your wallet green? Account ETH Profit Calculator
Source: Coin360
During the same period, BTC fell about 7%; so the king coin was hammered more than the ETH – further strengthening ETH decouples of BTC. But Binance Coin [BNB] outperformed both assets on a weekly basis.
Despite the corrections, the Crypto Greed and Fear index was “neutral” with a value of 48 at the time of press, compared to the “greed” position last week (May 7-14).
Will Bulls Continue to Defend $1800?
Source: ETH/USDT on TradingView
A short term downside could not be overruled with price action below the 50-EMA (Exponential Moving Average) and the RSI hovering below the 50 mark.
Short-term holders in particular could panic sell their ETH holdings if market sentiment deteriorates in the coming days/weeks.
The first sign of weakness in ETH’s market structure will be to breach and close a daily session below the 100-EMA of $1764 (yellow line). Such a downswing could send ETH down to $1700. The second telltale sign of weakness will be a close below USD 1700, which could depreciate ETH to USD 1500.
On the upside, bulls may feel relieved as they push ETH above the $1845 50-EMA (blue line). Such a move could fuel hopes of regaining the $2,000 psychological level and dent any prevailing bearish sentiment.
Meanwhile, CMF (Chaikin Money Flow) hovered around zero after pulling out of the negative zone – capital inflows improved but faltered in recent days. Similarly, OBV was also flat, meaning demand was wavering, pointing to likely near-term consolidation.
Positive aggregated CVD means…
Source: Coinalyse
According to Coinalyze, the aggregated CVD (Cumulative Volume Delta) spot, which tracks buyer/seller activity in addition to overall sentiment, was positive.
The metric has been negative since May 3, but turned positive on May 12 after the price hit the $1800 support level. It shows that buyers have been in charge for the past two days.
How many Worth 1,10,100 ETHs today?
On the liquidation side, long positions worth $2.5 million were destroyed in the past 24 hours, compared to $1.9 million in short positions. This development shows mildly bearish sentiment that could undermine a strong ETH recovery.
Macro traders tracking ETH/USDT should watch out for US debt ceiling woes alongside US retail sales data scheduled for Tuesday (May 16), which will affect all USD/USDT linked assets/pairs.
