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 Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 12 Apr 2022 https://twitter.com/paraga/status/1513354622466867201

2

Retrieved 12 Apr 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/8e6028bd-1f8c-4521-b3bd-3a69e84a23d0.pdf

3

Retrieved 12 Apr 2022 https://twitter.com/elonmusk/status/1503222294277197829

4

Retrieved 17 May 2022 https://mobile.twitter.com/elonmusk/status/1512954808394731521

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