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.
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.
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.
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.
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.
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