3 Altcoins Look to Recover April’s Losses in May: How to Trade Ethereum, BNB, PEPE
  • The cryptocurrency market plunged in April, with Bitcoin leading the decline.
  • BNB has fared better than most, currently hovering between $550 and $650.
  • Meme coin PEPE has corrected after surging and is currently aiming for a breakout above $0.000008.
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  • The crypto market experienced a significant downturn in April, with overall average losses exceeding 20%, erasing the gains achieved in March. This selling pressure continued into May and has led the decline so far.

    Bitcoin’s April closing price was $60,672, with a decline of 14.88% for the month. The decline continued into May, with the price now down to $57,000. The second-largest cryptocurrency by market capitalization suffered even bigger losses, dropping 20% ​​in April. ETH struggled to maintain support near $2,900 throughout the month.

    However, it has been more resilient than the broader market, falling only 8% since April. This relative stability can be attributed to his use of BNB collateral in token offerings hosted on the Binance platform. In contrast, the meme coin market, which is known for its high volatility, showed mixed results, starting May in positive territory after falling 24% in April.

    1. Ethereum: Must hold major support

    Ethereum attempted a recovery in late April and found support near $2,920. However, increasing selling pressure across crypto markets this week forced ETH to relinquish previous gains, bringing the key $2,900 support level back into focus.

    Unable to sustain above the $3,150 resistance, ETH retested the ideal correction value of Fib 0.618. During this correction phase, any meaningful reaction of ETH to Fibonacci levels based on the 2024 uptrend highlights the continued risk of a fall to $2,600, which could lead to a clear daily candle formation below $2,900. It is consistent with the Fibonacci 0.786 level.

    If the $2,900 support holds throughout this week, ETH could potentially revisit the $3,150 resistance. This level coincides with the intersection of the fast and slow EMA values, suggesting an area where strong technical resistance may exist. Additionally, the downtrend line is consistent with this zone, highlighting the need for a bullish breakout to reverse the current trend.

    If the buying pressure intensifies in the coming days, a break above $3,150 will pave the way for the $3,370 level. In the previous recovery attempt last month, purchases stalled around $3,300, preventing a breakout.

    The flow of positive news regarding potential ETF developments, especially this month, could be the catalyst needed for ETH to break through the resistance point and target the $3,600 to $3,800 range. On the contrary, key technical indicators maintain a bearish bias, suggesting that selling pressure could increase if ETH dips below $2,900.

    2. Binance Coin: Consolidation phase may end after March surge

    BNB’s rapid upward trajectory since February was interrupted by the overall market downturn in March. However, BNB shows relative strength compared to other markets. Part of this resilience can be attributed to using his BNB as collateral for token offerings on the Binance Launchpool platform.

    BNB price chart

    Examining the long-term chart of BNB, we can see that the cryptocurrency bottomed out in October 2023 and has since rapidly broken out of its resistance zone. BNB is currently consolidating between $550 (equivalent to the 0.768 Fibonacci retracement level) and its 2021 peak of $650.

    Since March, there have been no weekly closes below this level, although there have been brief declines below the $550 support. This helps BNB maintain its overall bullish trend, which is further supported by the 8-week exponential moving average. A weekly close below $550 could result in a near-term correction towards the $480 zone.

    On the upside, there is an intermediate resistance level near $605. If buying pressure pushes BNB’s weekly close above $605, it could surge towards $770 after passing its previous peak of $650.

    Interestingly, BNB entered a similar consolidation phase in January and then continued to rise sharply once the breakout was confirmed. Given the current consolidation pattern, BNB’s next move is likely to be heavily influenced by its exit from the short-term channel.

    3. PEPE: Key support level to watch for rebound

    After a sharp rise in February and March, the market entered a correction phase from the second half of March. The cryptocurrency has found support at the average price of $0.00000492, suggesting a healthy correction along the Fibonacci retracement level of 0.618.

    PEPE price chart

    In April, PEPE attempted to break out of the short-term downtrend line while finding support near the $0.000007 zone. Ideally, a price movement above $0.000008 would signal an exit from the correction phase. A daily close above $0.00000830 within this zone could lead to further recovery towards the $0.00001 to $0.000011 range.

    Conversely, a daily close below $0.000006 could trigger a decline to the $0.00000560 support level. A weekly close below this level increases the likelihood of a further significant decline.


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    Disclaimer: This content is created purely for educational purposes and should not be considered investment advice. Additionally, we do not provide investment advisory services.

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