Ethereum Finds Support after a Poor Weekly Start
ETH/USD Analysis
The cryptocurrency comes from its first negative week in around a month and on Monday it plunged amidst broader poor sentiment and US Dollar strength, while Elon Musk's rejection of the seat at Twitter's Board of Directors also weighed.
The CEO of the social media firm announced that Mr Musk had decided not to join the board after all [1], against previously announced agreement, which would limit his stake to no more than 14.9% [2]. It remains to be seen whether the Tesla (TSLA) CEO will have more power outside the board and whether he will look to buy more shares or even attempt a hostile takeover.
Mr Musk's Twitter involvement is generally seen as a positive development for cryptos, since he is quite outspoken around digital assets, while his holdings include Ethereum and Dogecoin [3] as per his mid-March tweet. Over the weekend, he proposed a series of changes to Twitter, suggesting an option to pay in Dogecoin for the subscription service [4].
ETH/USD closed on Monday below the 50% Fibonacci of the March Low/April High rise and the EMA200 (black line). Significant technical damage has been done and risk has moved to the downside for a test of 61.8% Fibonacci (2,877), although moves below the daily Ichimoku Cloud may prove harder (2,730-12).
Today however, the cryptocurrency attracts buyers, after the Relative Strength Index had reached the lowest levels since February. As such it may can find the chance to push towards 3,147, but a rebound beyond 3,316 will need a catalyst.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 12 Apr 2022 https://twitter.com/paraga/status/1513354622466867201 | |
| Retrieved 12 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/8e6028bd-1f8c-4521-b3bd-3a69e84a23d0.pdf | |
| Retrieved 12 Apr 2022 https://twitter.com/elonmusk/status/1503222294277197829 | |
| Retrieved 18 May 2026 https://mobile.twitter.com/elonmusk/status/1512954808394731521 |
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