There are flickers of hope for the Ethereum price. Bounded within a tight trade range with caps at $2k, ETH/USD continues to oscillate horizontally as bulls battle bears for control.
Even so, the uptrend is valid, and the second most valuable crypto could edge higher if fundamentals are favorable.
As of Mar 12, the ETH price is stable on the last day, adding 17 percent week-to-date and 10X year-to-date.
From a volume perspective, participation is decent, indicating optimism.
For instance, amid hopes of higher highs, the average ETH trading volumes of the last day are stable, adding roughly one percent to $29 million for a market cap above $205 billion.
However, a break above the current consolidation ought to be with relatively high trading volumes for a definitive trend to form. It could drive prices above $2k—if bulls emerge on top. Conversely, prices may fall below $1.5k just in case ETH/USD destabilizes.
Ethereum Price Overview
Aforementioned, the uptrend is valid despite undertones of weakness.
In the immediate term, $2k is the sell wall, clipping bulls’ attempts to close above the current $500 zone barrier.
Noticeably, the ETH/USD price is in range, trending inside late February lower lows in the daily chart. Besides, the ETH price is above Jan 2021 high, a net positive for optimistic buyers aiming for a moonshot above $2k.
Technically, a jump above Feb 22-23 trade zone with relatively higher participation would be a launchpad for even more upsides in the medium-term. It would fulfill the confidence of leading Ethereum permabulls.
On the lower end, $1.5k—Jan 2021 highs, provide a buy wall, that is, support. A retest of this level may be an opportunity for traders to double down, adding to their longs.
However, if sellers manage to blast below $1.5k, odds of a correction back to $1k will be on the cards.
Ethereum Market Movers
Ethereum is a leading smart contracting platform, one of the most actively developed, and the home of DeFi.
As of writing on Mar 12, trackers show over $40 billion of TVL in various DeFi protocols.
The high level of demand in Ethereum is forcing a re-design. EIP-1559—a proposal to overhaul the current first auction system, is an option. But there is opposition from mining pools, some of whom now say would attack the network for “educational purposes.”
Ethereum miners: "We will 51% attack Ethereum to protest EIP-1559"
— Philippe Castonguay (@PhABCD) March 11, 2021
Meanwhile, developers are planning to fast-track the migration to a Proof-of-Stake system in Eth2. Here, the network would fuse several scaling strategies—including Sharding and Layer-2, cementing Ethereum’s position.
Layer-2 solutions for DeFi is gathering steam:
Preparing for an Ethereum rollup centric world. Three things in the works:
– Loopring bridge: Efficient connector from & to other L2s.
– Ethport: Efficient access to L1 dApps directly from L2.
– L2 flash minting: Efficiency tool
— Loopring (@loopringorg) March 11, 2021
Ethereum Price Prediction
The ETH/USD is in an uptrend, adding 17 percent week-to-date.
The buy trigger is at around $2k—or around Feb 2021 highs. At the back of increasing trading volumes, a close above this mark could open up ETH/USD to $2.1k and $3.2k. These are the 1.618 and 2.618 Fibonacci extension levels of the Dec 2020 and Jan 2021 trade range.
Nonetheless, this up-thrust is highly dependent on whether ETH prices will satisfactorily reverse losses of late Feb 2021 losses or not. Notably, prices remain in range inside this bear zone discouragingly with relatively low trading volumes. From an Effort-versus-Result point of view, it is negative for ETH bulls.
Losses below $1.6k or Mar 8 bull bar may see the ETH/USD price drop back to $1.5k, retesting Jan 2021 highs. Subsequently, it shall confirm losses of Feb 22-23.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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