- Ethereum faces third rejection in May at multi-month resistance, pulls back from three-month high.
- Strong RSI and stability above the 200-day EMA support ETH’s bullish outlook, even as MACD turns bearish.
- ETH/USD finds strong support at the rising wedge base and 100-bar EMA, break above $2,770 may attract buyers.
Ethereum (ETH/USD) price renewed its intraday low near $2,635 during Friday’s European session, after failing for the third time in May to break above an upward-sloping resistance line dating back to late February.
This inability to surpass the multi-month resistance, combined with bearish signals from the Moving Average Convergence and Divergence (MACD) indicator, pulled ETH down from its highest level since February 24.
However, bullish momentum from the 14-day Relative Strength Index (RSI) along with ETH/USD’s sustained trading above key Exponential Moving Averages (EMAs) suggests limited downside potential before reaching crucial support levels.
ETH/USD: Daily chart hints at further decline
Source: Tradingview
Ethereum extends its pullback from a three-month-old ascending resistance line surrounding $2,770 while reversing from a recent multi-day peak. The retreat of the second-largest cryptocurrency is supported by bearish MACD signals, indicating further downside toward the next major support level, namely the 200-day EMA at $2,454.0
That said, a daily close below $2,454.0 would expose ETH/USD to a deeper decline toward a broad 16-week horizontal support zone between $2,150.0 and $2,100.0. If this support fails, the ETH could revisit the $2,000.0 psychological level and the previous resistance line from late 2024, near $1,770.0.
Meanwhile, Ethereum’s recovery remains stalled below the February resistance line near $2,770.0. If cleared, a swift move toward the late February peak around $2,855.0—and potentially the $3,000.0 psychological level—could follow
ETH/USD: Four-Hour chart signals limited downside room
Source: Tradingview
A three-week-old “Rising Wedge Bearish”, which is a bearish pattern on the four-hour chart, keeps the selling pressure intact on the ETH/USD pair.
Additionally, the momentum indicator MACD turns bearish and the RSI points to a continued pullback.
However, the 100-bar EMA strengthens the wedge’s lower boundary near $2,515, a key support level.
A break below $2,515.0 would confirm a short-term downtrend, highlighting the importance of the 200-bar EMA and an upward support line from early April near $2,340.0 and $2,140.0, respectively. Ethereum bulls can remain hopeful as long as the price stays above $2,140.0.
On the upside, the ETH/USD pair’s clear break above $2,770 would invalidate the rising wedge bearish pattern and could push prices past the immediate resistance at the $2,800.0 level, targeting higher levels noted on the daily chart.
Overall, Ethereum’s multiple rejections to rally suggest a short-term pullback but the broader bullish trend is expected to continue.
