Ethereum price analysis reveals ETH price to be trading in a sideways range between $1,600 and $1,700 since Feb. 15. Despite the bearish sentiment surrounding ETH, traders remain optimistic about the market’s direction for March. The consolidation could indicate that Ethereum is preparing itself for a possible 25% correction before it begins its next leg of bullish momentum.
March will bring about the launch of Ethereum’s much-anticipated Shanghai upgrade, which is causing a great deal of uneasiness.
Numerous analysts are forecasting that the upgrade permitting stakes to draw out their vested tokens from Ethereum’s proof-of-stake (PoS) smart contract will likely cause a short-term selloff.
Since its launch in December 2020, the Ethereum PoS smart contract has gained a huge following and amassed an incredible 17.4 million ETH (~$28.35 billion at current rates) according to Etherscan records.
ETH/USD daily chart analysis: Bears continue to dominate
Ethereum price analysis on the daily chart indicates ETH is trading at $1,642.78, down by
0.70 percent at the time of writing. Ethereum has sought support at the $1,600 level, and a breach below it could see ETH sliding to its next support line at around $1,500.
On the upside, immediate resistance is found at $1,700 while further upside can find a strong resistance near the Fibonacci level at $1,800.
ETH’s MACD suggests the ETH/USD pair is still in a bearish zone, while the 50-day moving average has crossed below the 200-day moving average which stands as an indication of a prolonged bearish period.
The technical analysis suggests that Ethereum is most likely to remain bearish in the short term. If it breaks past the current resistance, ETH could potentially make a strong recovery and start its run toward $2,000. Until then, traders should remain patient while they wait for more positive news before taking any aggressive moves.
At the same time, the SMA 50 is still below the SMA 200 which suggests that bears are still in control. The price of ETH has moved from a $1,671.3 high to a $1,636.7 low in less than 24 hours. On the upside, if Ethereum manages to break past the current resistance area of $1,700 it will be bullish for ETH and could potentially lead to a surge in price toward higher levels.
Ethereum price analysis on a 4-hour chart: Bullish reversal pattern could be forming
Ethereum price analysis on the 4-hour chart reveals ETH is currently trading at $1,644.4 and is showing signs of a possible bullish reversal pattern in the making. The MACD is still in a bearish region as Ethereum’s 50-day moving average has again crossed below its 200-day moving average.
With the launch of Ethereum’s Shanghai upgrade in March, a possible bullish breakout could be seen if the support level is maintained at $1,600 and ETH successfully breaks past its current resistance range at $1,700.
Furthermore, Ether is experiencing difficulty in breaking above the technical resistance range. Since August 2022, the Ethereum token has made multiple attempts to switch the $1,650–1,700 area into support which can be seen clearly on the chart below with a red bar.
Intriguingly, every failed breakout attempt has caused a powerful retreat towards the same support line – an ascending trendline that spans several months (black).
History has a tendency of repeating itself, so if the pattern continues, ETH’s next drop should be all the way to $1,250 – that is 25% lower than its current value. On the other hand, when it breaches through $1,650 – 1,700 resistance levels and follows on an upward trajectory towards $1,925-2.000 (purple), then we can expect some major growth in Ethereum’s price.
Ethereum price analysis conclusion
Ethereum price analysis indicates that it is likely to remain bearish in the short term. The upgrade permitting stakeholders to draw out their vested tokens from Ethereum’s proof-of-stake (PoS) smart contract could cause a short-term selloff. On the upside, if ETH manages to break past the current resistance area and move towards higher levels, then we could see a surge in Ethereum’s price.
