Friday, May 29 ETH Morning Outlook

In the morning, Ethereum moved in tandem with Bitcoin, weakening together, affected by the escalation of US-Iran geopolitical conflicts and the spread of market panic sentiment. The market quickly broke downward in the early hours, losing the key psychological level of $2,000, with a low around $1,965. Currently, it is weakly oscillating in the $1,995‑$2,005 range.
On the technical side, at the four-hour level, the price is moving along the lower band of the Bollinger Bands, which are opening downward. The moving averages are in a bearish alignment, and short-term selling pressure continues to be released. This round of decline is driven by emotional panic caused by news, combined with continuous outflows of Ethereum ETF funds, with buying support extremely weak. Rebounds have repeatedly failed, and the short-term bearish trend dominates the market.
From the market structure perspective, after this sharp decline, indicators have entered deep oversold territory, with the price significantly deviating from the moving averages, indicating a short-term need for technical correction. Strong support is seen at $1,950‑$1,960, while resistance is at $2,030‑$2,050.
Geopolitical negative news is a temporary disturbance; the medium- to long-term fundamentals remain unchanged. The morning market is mainly consolidating at low levels to gather strength. As long as the key support holds, once the panic selling pressure is digested, Ethereum will follow the broader market to initiate an oversold rebound and recovery.
Trading suggestion: Wait for a rebound and stabilization at $1,980‑$1,960 before considering long positions.
Target: $2,030‑$2,050
After the rebound stabilizes at $2,030‑$2,050, look for a correction.
Target: $BTC $1,990‑$1,970