Jonathan Morgan
Independent Analyst
- Ethereum price stalls near the critical $3,500 price level.
- Consolidation between $3,300 and $3,500 may continue until early April.
- Very few warning signals for a broad sell-off exist, but downside risks remain a concern.
Ethereum price action looks poised to take a breather before continuing its spectacular run. After two consecutive days of late-session selling pressure, buyers appear apprehensive for the first time in over three weeks.
Ethereum price could see profit-taking before pushing on towards $4,000
Ethereum price is having some difficulty cracking the $3,500 resistance level. That difficulty is not much of a surprise when you consider the collection of resistance at $3,500: the weekly Kijun-Sen and 100% Fibonacci expansion. Achieving a breakout above this level will likely create another massive bullish drive for ETH.
The daily Relative Strength Index remains in bull market conditions and is not yet at the first overbought level of 80. This suggests that the Ethereum price could continue to push higher to at least the $3,800 value area. But even if that occurs, buying pressure may not cease. The weekly Relative Strength Index is just coming out of the long congestion zone of trading between the oversold levels of 40 and 50 since the beginning of 2022.
Additionally, because many new traders continue to view, incorrectly, the RSI as overbought as 70, Ethereum bulls may be developing a bear trap near $3,500. The interpretation of 70 as an overbought level was changed in 2012 with Connie Brown's groundbreaking work, 'Technical Analysis for the Trading Professional' – required reading for the CMT certification.
Upside potential could extend as high as the 161.8% Fibonacci expansion at $4,550. Downside risks are likely limited to the bottom of the bull flag and top of the Ichimoku Cloud (Senkou Span A) at $3,175.
ETH/USD Daily Ichimoku Kinko Hyo Chart
Downside risks for Ethereum price should be limited to the $3,000 value area, where the 50% Fibonacci retracement and daily Kijun-Sen exist.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?