To avoid a capitulation-level decline, Ethereum prices must hold this critical level

The crypto market had another day of agony on May 12, as the aftermath from the Terra’s LUNA and UST failure continues to ripple through the ecosystem. While coverage for UST and its influence on Bitcoin (BTC) have been widely reported over the previous days, traders have also rushed out of the market in recent days.

According to Cointelegraph Markets Pro and TradingView, the past seven days of selling resulted in Ether declining to $1,701, which was not seen since July 2021.

ETH/USDT 1-day chart. Source: TradingView

Here’s a rundown of what several experts think will happen to Ethereum, as well as support and resistance levels.

The value of ETH must be restored to $2,250 –

The crypto analyst and pseudonymously-named Twitter user ‘Rekt Capital’ published the following chart to demonstrate Ether’s critical supports and resistance levels, which indicate that the price is on track to retest them.

ETH/USD 1-month chart. Source: TradingView

Rekt Capital said, “If Ether isn’t able to rebound strongly from here so as to Monthly Close above the black ~$2,250 level above, the ~$1,720 will reveal weakness and may not hold price.”

Should the price continue to drop, Rekt Capital added that the chart’s blue zone, located between $1,350 and $1720, is “the next major support sub-$1720,” which is near $1,350.

Breaking out of the summer 2021 lows –

The price action of Ethereum has been described by ‘Crypto Feras’ in the following tweet, who pointed out that just a few weeks ago it sounded crazy to talk about Ether dropping to these levels.

ETH/USDT 1-day chart. Source: TradingView

Crypto Feras said, “Technically Ether is bouncing off its 2021 summer lows (outperforming Bitcoin so far). The bounce areas are either this $1,700 – $1,800 [range] or we [are] gonna have to test [the] $1,400 zone.”

A possible short-term retest of $1,550 is a possibility –

Market analyst Caleb Franzen took a longer-term perspective on the Ether’s price action, stating that a “bearish” breakdown below a major trendline is possible.

Franzen said, “Very possible that we retest the January 2018 highs, around $1,550, in the next 24 hours. If/when we break below that former resistance level, that’s another bearish signal.”

The cryptocurrency market capitalization is currently worth $1.219 trillion, with Ether’s dominance rate at 19.2 percent.

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