Daily Technical Analysis BTC & ETH — 6th May 2022

WenX Official
3 min readMay 6, 2022

In order to support you and the crypto community with trading decisions, WenX is serving you with Daily Technical Analysis updates on BTC & ETH.

Bitcoin price struggled to clear the $40,000 resistance zone. BTC formed a high near $40,029 and started a fresh decline. There was a major drop below the $38,500 and $38,000 levels.

There was a break below a key bullish trend line with support near $39,250 on the hourly chart of the BTC/USDT pair. The pair even declined below the key $37,500 support and settled below the 100 hourly simple moving average.

Finally, it tested the $35,500 zone and traded as low as $35,407. It is now consolidating losses near the $36,200 level. On the upside, bitcoin price is now facing resistance near the $36,500 level.

The 23.6% Fib retracement level of the downward move from the $40,029 swing high to the $35,407 low is also near the $36,500 zone. The next key resistance could be near the recent breakdown zone at $37,500, where the bears might take a stand.

The 50% Fib retracement level of the downward move from the $40,029 swing high to the $35,407 low is also near the $37,500 zone. To start a fresh increase, the price must settle above the $37,500 level.

If bitcoin fails to clear the $36,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,000 level.

The next major support is seen near the $35,500 level or the recent low. A downside break below the $35,500 support might spark another sharp decline. The next major support could be $34,200.

Ethereum struggled to settle above the $2,950 resistance. ETH topped near the $2,970 level and started a fresh decline. There was a sharp move below the $2,900 and $2,850 levels.

Besides, there was a break below a key bullish trend line with support near $2,900 on the hourly chart of ETH/USDT. Ether price declined below the $2,800 level and the 100 hourly simple moving average. Finally, there was a spike below the $2,720 support level.

A low was formed near $2,678 and the price corrected a few points. There was a recovery wave above the $2,720 level. The price even climbed above the 23.6% Fib retracement level of the recent decline from the $2,969 swing high to the $2,678 low.

On the upside, an initial resistance is seen near the $2,760 level. The first major resistance is near the $2,820 level. It is near the 50% Fib retracement level of the recent decline from the $2,969 swing high to $2,678 low. The main breakout zone is now near the $2,875 level.

A close above the $2,875 level could open the doors for a decent increase, In the stated case, ether price might rise towards the $3,000 resistance.

If ethereum fails to gain pace above the $2,760 resistance, it could continue to move down. An initial support on the downside is near the $2,720 zone.

The next major support is near the $2,680 level. If there is a downside break below $2,680 and the recent low, ether price might accelerate lower. In this case, it could even decline below the $2,600 level.

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