March 4, 2021 / Analytics

Ethereum Price Analysis: What Are The Prospects For ETH?

ethereum forecast

Ethereum (ETH) cryptocurrency market has completed a correction after a powerful dump. Chart data suggests that ETH will drop in price to $ 1200 by March 11.

Key Points

  • ETH is trading below the 100-hour moving average ($ 1,584) and below the $ 1,600 resistance zone.
  • A bearish trend line has formed with resistance around $ 1610 on the hourly chart.
  • If the value of the asset exceeds $ 1,474, then the rate of the downward movement will accelerate.

On February 28, Ethereum fell to its lowest level in the last four weeks – $ 1,293 (Bitstamp data). As expected, there was a correction after reaching the bottom. ETH/USD increased by 28% in three days (to $ 1,658). Nevertheless, the value of the cryptocurrency did not fix in the range above $ 1,600 and fell to $ 1,535. In addition, Bitcoin (BTC) also broke the psychological barrier at $ 50,000.

The nearest resistance barrier is located in the $ 1,571 area, which coincides with the 23.6% Fib recorded during the pump from $ 1,293 to $ 1,658. The barrier of support is at $ 1,518. However, a key support barrier formed at $ 1,474. If this barrier falls, then Ethereum will drop.

eth chart

What Are The Prospects For Ethereum?

There is an uncertain situation on the market now. On the one hand, the dips get deeper and the peaks get lower. On the other hand, the chart clearly shows an uptrend line with support at $ 1,552.

eth chart

The time frame is evidence in favor of maintaining the bearish trend. Since November 2020, the price of ETH has dropped by 20-32% several times but never stayed at the bottom for such a long period. A positive scenario is possible if the value of the coin remains above the bullish trend line that started on February 28. Otherwise, you should count on a dump. Judging by the previous leaks, the bears’ target will be around $ 1,200.

eth chart

On March 3, Market Cipher issued a signal to sell ETH, moreover, now the indicator is tending to the overbought zone. Taking these factors into account, you should refrain from purchasing the asset. If Ethereum starts pumping again, then it will quickly reach the extreme overbought zone (around $ 1,800), and at this point, it will be necessary to sell coins. Then a correction will inevitably occur, during which it is worth buying coins. If the asset is immediately dumped, then it makes sense to buy coins at the bottom around $ 1,200.

eth chart

Technical indicators:

  • 4 hours MACD is in a bullish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 1474.
  • Major Resistance Level – $ 1700.
  • The nearest pivot points are $ 1550 and $ 1796.
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