ETH/USD Price Dangles above $1,500, Ethereum Bulls Cautious
The Ethereum price is stable, paring losses versus the greenback and struggling to reverse against Bitcoin in the previous trading week. Technically, there are tinges of strength, but bears may step in and squash feeble bulls.
As of writing on Mar 4, the ETH price is down a ballpark five percent week-to-date versus both the BTC and USD. However, for traders, optimism is anchored on bulls’ ability to maintain prices above $1.5k, albeit with comparatively lower trading volumes.
According to trackers, participation on the last day has been weaker. Although the average daily trading volumes are up to four percent to $28.6 billion, there are far more traders than a few days ago when prices were trending higher.
Ethereum Price Overview
Technically, the ETH/USD price is trading within a bearish breakout pattern following sharp losses through Feb 22 to 23.
Presently, ETH prices are in range mode, oscillating after forming the double bar bullish reversal pattern of Feb 28 and Mar 1. The failure of buyers to confirm and close above the highs of the bull bar of Mar 1 may suggest weakness. However, since ETH prices are still firm above $1.5k, odds of higher highs remain elevated nonetheless.
In the immediate term, the ETH/USD price is capped between the middle BB—at around $1.7k on the upper side, and Jan 2021 highs at $1.5k. If the buy wall sustains the uptrend, anchoring determined bulls, ETH/USD prices could surge towards $2k in the medium term. Accordingly, this depends on how firm the breakout above $1.7k will be, reversing losses of Feb 22 and 23, a net positive for ETH bulls.
On the flip side, if sellers flow back, squash ETH bulls, and unwind Mar 1, losses below Jan 2021 highs invalidate $1.5k as a reliable support. In turn, this dump down may force ETH/USD towards $1k.
Ethereum Market Movers
Ethereum is the most widely adopted smart contracting platform. Its developers are behind the wave of DeFi. According to trackers, over $33 billion of digital assets are currently in management by different finance dApps.
Nonetheless, Ethereum has a fee problem. EIP-1559, despite the rejection from miners, could go through via the London upgrade.
EIP-1559 deployment AKA London Fork is going to be discussed at the #Ethereum All Core Devs meeting this Friday.
If successful, beras BTFO$ETH #ETHEREUM 🔷🔹🌛 pic.twitter.com/lWqbyGHG5J
— TΞtranodΞ (💎, 💎) (@Tetranode) March 3, 2021
Concurrently, to further bid down Gas prices, intensive dApps would likely shift to Layer-2 options like Optimistic Rollups.
4/ So, rollups are often willing to pay relatively high gas prices and also use a fair amount of L1 gas. Multiply that by an ecosystem of many rollups.
— Ryan Berckmans (@RyanBerckmans) March 3, 2021
Meanwhile, Amazon Web Services’ (AWS) announcement supporting Ethereum node management is a boost, indicating confidence in blockchain as an emerging technology.
Ethereum Price Prediction
The uptrend may be firm, but ETH/USD prices risk slumping.
From the daily chart, ETH prices are oscillating within a narrow $200 range. Caps are at $1.7k and $1.5k, resistance and support levels, respectively.
Accordingly, a close above $1.7k and the middle BB confirms the double-bar bullish reversal pattern of Feb 28 and Mar 1. Preferably, this ought to be with high trading volumes. In that case, the ETH/USD price may surge back to $2k.
However, since ETH prices are under pressure, there is a real possibility of bears flowing back. As such, traders can adopt a wait-and-see approach.
Losses below $1.5k—Jan 2021 highs, may see ETH/USD fall back to $1k—the 38.6 percent Fibonacci retracement pattern of the Dec 2020 and Jan 2021 trade range.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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