The collapse of SVB has caused significant market turmoil, but amidst all the chaos, Ethereum (ETH) has managed to hold its ground and find significant support at the $1450 price level. This development is a positive sign for ETH investors looking for stability in these uncertain times.
However, the next few weeks of March will be crucial for ETH investors as negative sentiment continues to plague the market. The challenge for investors will be to hold the price at the $1450 support level, despite the ongoing market turbulence.
The release of more economic data in the week starting today will also be crucial for ETH, with the market sentiment favoring the crypto markets. Finally, investors in ETH will anticipate the ECB rate hike decision on Thursday, after which investors and analysts predict the ECB will hold a 50bp rate hike.
Technical Analysis of The Daily Chart For Ethereum
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Ethereum (ETH) has been making some interesting moves in the market lately. After breaking above the trend line of the symmetrical triangle that sustained the market for an extended period last week, ETH is again testing the $1450 level. If the altcoin can sustain and consolidate above this level, the next target will be $1,700.
However, if ETH fails to maintain the support level, the price could significantly plunge to $1,200. It is worth noting that the upper trend line of the symmetrical triangle aligns perfectly with the 200-day moving average, which is hovering around the $1450 level. This level provides a sturdy support level for the cryptocurrency.
Technical Analysis of The 4-Hour Chart For Ethereum
The 4-hour Ethereum (ETH) chart indicates that the altcoin has been on an ascending price channel. However, in recent times, ETH has dropped below the support line and cascaded to daily lows. Despite this, ETH has found support as the cryptocurrency reaches the channel’s lower boundary.
Currently, the price of ETH is hovering in tight ranges at the $1410 level, with a static region of resistance at $1500. However, ETH will likely see a breakout range form in the coming week, and the direction of the resulting breakout will determine the next direction for short-term ETH.
On-chain Analysis of ETH
During the current bullish Ethereum (ETH) run, the Taker Buy/Sell ratio saw a spike, confirming the positive market sentiment. However, the price entered a consolidation range and dipped sharply following the spike. The metric dropped below one, indicating seller sentiment.
Later in the day, the Taker metric declined to multi-month lows, suggesting that the market is unlikely to see a sustained bull run unless the Taker metric rises above one. The taker ratio is a crypto metric that measures the ratio of buy orders to sell orders in the market.