March 30, 2022 / Analytics

Ethereum Price Analysis: Demand for ETH Is Growing

eth forecast

The upward trend continues in Ethereum (ETH) cryptocurrency market, but a correction should occur in the near future. Therefore, the coin will fall in price to $3200 by April 6th.

Key Points

  • ETH is trading above the 100 hour moving average ($3,277).
  • A bullish trend line has formed with support at $3,300 on the hourly chart.
  • The nearest resistance barrier is located at $3,515.

Ethereum price began to be pumped on March 15, and the price of the coin increased by 39% in two weeks. On March 18, buyers broke through the shrinking triangle and fixed above its upper line, and on March 28 they managed to overcome 38.2% Fib, taking into account the dump from $4,867 to $2,150.

eth chart

These factors indicate the end of a bearish trend and a reversal in the market. However, Ethereum rate has been slightly corrected over the past 15 days, so the bulls have little chance of breaking through the 50% Fib ($3,515) on the first try. Accordingly, the most likely scenario involves an increase in the price of the asset to $3,515 and a subsequent drop in the value of the coin to $3,200 (38.2% of the Fib).

eth chart

Demand for Ethereum Is Growing

The number of purchased ETH coins has been increasing against the backdrop of an increase in trading volume since March 15. In addition, traders keep increasing their cryptocurrency holdings. According to the research company Glassnode, crypto exchange users withdrew $6 billion worth of Ethereum from the trading floors and replenished the balance with coins worth $5 billion from March 21 to March 27. That is, the supply of ETH has decreased by $1 billion. A similar trend is observed with Bitcoin (BTC).

eth chart

A decrease in ETH stocks on crypto exchanges against the background of an increase in demand for a digital asset will spur the growth of the virtual currency rate. Thus, after the correction to $3,200, we should expect the bull run to continue. Most likely, by the end of April, the price of the coin will reach $3,840 (61.8% Fib) and in the summer it will increase to a peak of $4,867.

eth chart

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 60 (in the neutral area).
  • The main support level is $3,200.
  • The main resistance level is $3,515.
  • The nearest pivot points are $3,143 and $3,453.
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