Despite the valiant efforts of the bulls and their determination to uphold the $1,800 level, the price of Ethereum dipped below this threshold several times last week. Although we currently observe the ETH/USDT pair not straying far from the $1,800 support as the week draws to a close. It is worth noting that since Thursday, the price has not fallen below the $1,800 mark. Nevertheless, the price chart indicates an ongoing struggle, with Ethereum's price continuing to move within a narrow sideways channel.
In other news, the European Union member states have unanimously approved the world's first comprehensive set of crypto asset regulations, as CNBC reported. "Recent events have underscored the imperative need for rules that provide better protection for European individuals who have invested in these assets, while also preventing the illicit exploitation of the crypto industry for money laundering and terrorism financing," stated Elizabeth Svantesson, Sweden's Minister of Finance, who currently presides over the EU. Under the new regulations, companies seeking to issue, sell, and safeguard crypto assets must obtain the necessary licenses.
Turning our attention to developments concerning Ethereum itself, it has been revealed that the number of staked Ethereum coins has peaked. With less than two weeks remaining until the end of May, the Ethereum (ETH) network has already set a record for the highest number of locked coins. The count of staked coins experienced rapid growth starting from May 9, and as of today, it has increased by 2% (372,742 ETH). Consequently, the total number of staked coins has reached an all-time high of 18.6 million (15% of the circulating supply), amounting to approximately $33.8 billion based on the current exchange rate. This positive trend signifies a high level of user trust in the Ethereum blockchain.
Now let us delve into the possible outcomes of the ongoing battle between sellers and buyers, shedding light on the upcoming week through technical analysis.
Our inclination remains towards a scenario where the price decreases towards the vertical support level indicated on the daily price chart. The longer the price remains within a sideways trend, the greater the likelihood of this scenario unfolding. However, based on the chart, a breakout appears imminent in the coming days. The initial target for a decline would be the horizontal support level within the $1,700-$1,650 range. Subsequently, a minor correction may occur, and if the price fails to return to the $1,800 zone, the next wave of sell-offs could drive it to the $1,550-$1,600 range.
Examining the weekly price chart, we observe the formation of a hidden bearish divergence between the price chart and the RSI indicator, suggesting a potential continuation of the price decline. Additionally, the MACD histogram is declining towards the neutral zone and is poised to enter the zone below zero in the near future.
Hence, despite the breakthrough of the global resistance level, it is plausible that the price may still revisit, leading to a subsequent rebound. Conversely, in the event of a return to the Bearish trend, the price could even dip below the resistance level once again.