Key Takeaways
Ethereum (ETH) continues to face challenges as it struggles to reclaim the $2,000 mark after falling below the threshold on March 11. Despite several attempts at recovery, selling pressure remains strong and has prevented a breakout.
The broader market sentiment around the cryptocurrency also seems to contribute to ETH’s performance.
However, indicators reveal that buying pressure is picking up. Will ETH reclaim lost ground, or is a prolonged consolidation ahead?
ETH Bulls Defend Key Support
The last time ETH’s price dropped below $2,000 was in December 2023. Some months later, the cryptocurrency’s value climbed to $4,000, with signs that it could move closer to its all-time high.
While that did not happen, the current Chaikin Money Flow (CMF) position shows that ETH could be in line to trade higher. The CMF measures the flow of liquidity in and out of a cryptocurrency.
When the reading rises and is positive, it indicates rising buying pressure. On the other hand, a negative reading indicates sellers’ dominance.
On the daily chart, the CMF reading had refrained from sliding below the zero signal line.
Should this remain the same, ETH’s price is unlikely to drop toward $1,500, as predicted in some corners.
But for that to happen, Ethereum’s price has to hold above $1,861 and retest $2,227, as failure to do so could lead to capitulation.
From an on-chain perspective, the Bulls and Bears indicator also shows that ETH’s price will likely climb. The Bull Bear Power tracks the activity of addresses buying and selling at least 1% of the total trading volume.
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Bulls are those buying, while bears are those selling. The number of bears outpacing bulls indicates that selling pressure is dominant.
However, the Ethereum bulls have outnumbered bears in this case, indicating rising buying pressure. If this trend continues, ETH’s price might not experience another correction.
ETH Price Eyes Breakout From Triangle
Like the daily chart and the on-chain analysis above, the ETH/USD 4-hour chart also suggests a possible rebound. As of this writing, ETH’s price is still confined within a descending triangle.
However, the price has failed to slide below the horizontal support line, and the lower highs are being tested.
In addition, the Moving Average Convergence Divergence (MACD) has turned positive, indicating bullish momentum around Ethereum.
Should this remain the same, Ethereum’s price might climb to $2,187. If buying pressure increases, the value could hit $2,520.
On the other hand, if ETH fails to breach the triangle’s upper trendline, this prediction might not come true.
In that scenario, Ethereum’s price could decline to $1,762.
Disclaimer:
The views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to CCN, its management, employees, or affiliates. This content is for informational purposes only and should not be considered professional advice.
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