Ethereum (ETH) is starting the fourth quarter on a positive note, following a lackluster session on March 31st. ETH performed well in Mar. 2022 up from $2,445 to reach a high at $3,483 not seen since Jan. 7, 2022. Investors and traders continue to assess the market as upside risks on ETH/USD remain despite the rapidly decreasing ETH balance on Exchanges. As of March 15, a total of 1.268 million Ethereum worth $4.18 billion at rates around $2,500-$2,600 was withdrawn from centralized exchanges per IntoTheBlock data. Since this outflow happened, the price of $ETH has appreciated by nearly 50%. At the time of this analysis, ETH/USD price reached intraday highs of $3,532. Ethereum price continues to seek a move higher amid weak sentiment among bulls. The oldest Ethereum-centric group on Reddit, r/Ethereum, argues why we shouldn’t anticipate Ethereum 2.0 to “launch” anytime soon even as the focus remains on ETH 2.0. The community agrees that ETH2.0 is not a “product” that will “launch” one day. Ethereum, as Vitalik put it, will gradually evolve into a more complex form with gradual improvements over time.
Key Levels
Resistance Levels: $4,500, $4,000, $3,700
Support Levels: $3,200, $3,000, $2,700
ETH/USD Daily ChartEthereum hits a medium-term high at $3,532 at the end of the week, up from $3,482 the day before. Following the high, the no. 2 cryptocurrency began to consolidate and retraced to a low of $3,433. This consolidation might be permitted, provided that it is justified in light of the circumstances, although ETH/USD support remains around its MA 50.
Currently, ETH is trading near the daily moving average (MA 200), which has remained positive throughout its consolidation phase. Even though its initial selloff at MA 200 was quite swift, the bulls recovered and do not face major resistance at $3,500. The next degree of resistance to overcome is $3,700, with no further options available.
ETH/USD 4-Hour ChartShort-term bulls must push the price above the $3,500 resistance level on the 4-hour chart to encourage technical buying towards the next barrier. On the flip side, bears must hold the price of ETH/USD below $3,200 to increase selling pressure. Patient traders may want to wait for a spike in ETH volatility before building short-term buying positions.
To recap, the ETH/USD is attempting to maintain its recent climb beyond $3,400, but only a significant rally above $3,500 would give bulls the upper hand. In the short term, the relative strength index (RSI) is maintaining an upward bias, which will be tested if the price breaks through the stable resistance barrier at $3,500.
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