Ethereum Price Strung in a $300 Zone, will ETH/USD break $2k?
For what will cap yet another week of non-action, horizontal drub consolidation, the Ethereum price is trading below $2k.
The good news for optimistic traders is that while it might be “boring,” there are hints of consolidation. The ETH/USD price action points to possible support, increasing the odds of another break higher.
As of writing on Mar 19, the ETH price is tethering close to $1.8k. Reflecting this state of consolidation and lack of direction is a stable coin, without solid gains against the BTC and USD.
Similarly, participation is relatively low, indicating a contraction. Although volumes are comparatively higher, within range, the average trading volumes of ETH on the last trading day are down two percent to $31 billion.
Ethereum Price Overview
The absence of conviction from either buyers or sellers explains the directionless market. Even so, the trend remains bullish unless a sharp, unexpected dump occurs, putting bulls in the back seat.
Presently, the immediate resistance is at $2k—or February 2021 highs. It has been retested twice in the last trading months, but buyers are still not successful. On the flip side, support is at $1.7k, the 20-day moving average, the middle BB.
A close above or below any of these reaction levels could see the ETH/USD price race to $2.1k—the 1.618 Fibonacci extension level of the Dec 2020 and Jan 2021 highs. On the reverse side, prices could sink below $1.7k and the middle BB to $1.5k in a retest of Jan 2021 highs.
Ethereum Market Movers
Ethereum is a pioneer smart contracting platform whose native currency, ETH, is the second most valuable digital currency.
According to a Senior Research Analyst at Messari, Ethereum—once Eth2 is live, can flip Bitcoin, taking the crown as the most valuable and preferred store-of-value. He cites ETH’s deflationary feature once staking is live and the depth of its adoption level.
Meitu, a Hong Kong-listed public firm, bought $50 million of ETH and BTC. They now hold $90 million of crypto, with a higher weighting on ETH. The Xiamen-based software company is the first to hold ETH in its treasury.
Already, the shift to Eth2 and Proof-of-Stake is gaining momentum. Triggers are efforts to lower Gas fees—averaging $19 as of Mar 19 and scaling. Besides migration to Eth2, most DeFi projects are shifting to Layer-2, including Optimistic Rollups and ZK-Rollups.
Ethereum Price Prediction
The ETH/USD chart is bullish despite the current lull.
From the daily chart, the ETH price is consolidating horizontally with caps at $2k and $1.7k. As long as ETH prices range within this $300 zone, buyers have the upper hand. However, a breach below $1.7k and the middle BB (as mentioned earlier) could see ETH prices retesting $1.5k. This is the immediate target for buyers.
Focusing on the positives, if Ethereum fundamentals propel the ETH/USD price above $2k and Feb 2021 high, prices may reach $2.1k in the medium term. This level flashes with the 1.618 Fibonacci extension level of the Dec 2020 and Jan 2021 trade range. Further gains open ETH prices to $3.2k.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.