The overall cryptocurrency markets plunged to some extension on Friday after steep losses made investors dump risk assets as the U.S dollar gained in geopolitical concerns. Ethereum and the rest of the altcoin market suffered declines as Bitcoin dipped to fresh lows of $39,450 on Feb. 18. ETH upside price action for this week has been limited by its historical key resistance zones. Ether failed to surpass the $3,200 resistance and has since corrected lower. At the time of this analysis, ETH/USD presently trades at $2,801 after dipping to intraday lows of $2,752 on Friday. As per a recent report from Morgan Stanley’s analyst, other networks such as Solana ($SOL), Cardano ($ADA), Tezos ($XTZ), Polkadot ($DOT) might overtake Ethereum in terms of smart contract performance. Ethereum is more volatile than Bitcoin, the report notes it faces “greater competitive threats, scalability concerns, and complexity challenges than Bitcoin” due to its “more ambitious addressable market.”
Key Levels
Resistance Levels: $3,500, $3,200, $3,000
Support Levels: $2,700, $2,500, $2,300
ETH/USD Daily ChartETH/USD is trading just beneath the descending moving average (MA 50) around $2,800 as a one-month consolidation period seems to have the pair chained between the $2,300 and $3,300 boundaries. The horizontal trajectory of the moving average (MA 200) suggests that the price trend has dissolved, hinting that the pair may continue to drift for a while longer.
The daily relative strength index (RSI) is slightly below the 50 thresholds trailing marginally in an attempt to return higher. In the negative scenario, preliminary downside constraints could occur at the $2,700 nearby support. If this floor gives way, prompt tough support may then come from the $2,500. On the other hand, buyers might re-emerge above $2,700.
ETH/USD 4-Hour ChartLooking at the 4-hours chart, the pair formed a medium top near the $3,285 and corrected lower. There was a move below the 4-hour moving average (MA 50) and the $3,000 -$2,900 support levels. The pair declined below the 4-hour moving average (MA 200) towards the swing low to $2,700 without testing this base.
ETH/USD might rebound towards its immediate resistance at $2,900. Meanwhile, any more losses might send the pair beneath $2,700. On the downside, the pair might be supported near the $2,500 level. The next major resistance is near the $3,000 level. A close above $2,900 his week could open the doors for a move towards a strong increase.
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