Ethereum (ETH) cryptocurrency is fluctuating within a contracting triangle. The level of volatility is falling. Therefore, by March 23, ETH/USD will rise in price to a maximum of $2,800.
The lines of the shrinking triangle will cross in mid-April. Therefore, you should not expect sharp jumps in the value of Ethereum over the next month. It seems that the price of the coin will rise to $2800 by March 23. 23.6% Fib passes at this mark, taking into account the dump from $4,867 to $2,150.
Due to the low volume of trading, the bulls have little chance of breaking through the resistance on the first try, respectively, ETH price will bounce from $2,800 and fall to the lower line of the triangle, which will be held in the $2,500 area. Theoretically, Ethereum could immediately fall in price to $2,400, but the upward trend that emerged on March 7 indicates an increase in the value of the asset to $2,800 before a correction.
ETH price has been hovering below the 50-day moving average line since the beginning of December 2021. In February, buyers tried three times to gain a foothold above the MA, but each time they were defeated. Therefore, it becomes obvious that this line plays the role of a key resistance barrier.
Overcoming and subsequent consolidation above the MA in 50 days will signal an upcoming pump. Now the moving average is at $2,765, therefore, we can talk about an upward movement if the bulls manage to keep the Ethereum rate above $2,800.
The contracting triangle is a bearish pattern. Last time a similar pattern was broken down. Accordingly, the possibility of a dump cannot be ruled out. Taking into account the width of the shrinking triangle, we can assume that the price of ETH will collapse to $1,300. However, at $1,900 there is a strong support barrier, coinciding with the 61.8% Fib, taking into account the pump from $90 to $4,867. Therefore, the price of ETH is unlikely to drop below $1,900.