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The upside recovery of the ETH/USD is completing the week on a neutral note after a minor setback as the crypto market see-sawed after investors’ concern on the options expiry.
*ETH/USD upside recovery stays capped beneath $1,800
*Bearish conditions and narrowing volume warn of headwinds
*Ethereum scaling solution’s public mainnet postponed till July
The soaring ETH prices are nurturing the positive structure, while the moving average (MA 50) is reflecting a minor pause in bullish sentiment. ETH/USD upside recovery stays capped beneath $1,800 on low volatility while transmitting mixed signals in directional momentum. The traction in the ETH/USD pair is picking up on the larger time frame but bearish conditions and narrowing volume warn of headwinds at the $1,800 – $1,900 zone and possible consolidation before bulls continue. The crypto asset is currently second on the Coinmarketcap table, with a market cap of $194.58 billion and $18.26 billion in trade volume over the past 24 hours.
Ethereum Scaling Solution’s Public Mainnet Postponed
Optimism, an Ethereum Layer 2 scaling solution, will not launch its mainnet until at least July 2021. The Optimism group has stated that its mainnet launch will no longer take place this month as intended, but that a launch in July is still feasible. As per a statement posted on March 25, 2021, the group made the move to allow its ecosystem partners, projects, wallets, and others more time to implement, audit, and evaluate the Ethereum Layer-2 scaling solution.
ETH Daily Chart: Ranging
The ETH/USD pair is tackling the moving average (MA 50) at the $1,719 level, which happens to be the extension of the down leg from $1,545 to $1,700 levels. Dip-buying to remain favored while the price action stays above ascending trendline support around $1,600 level. The price above $1,600 is in the positive region while the upwards pointing RSI is persisting towards the 50 midlines.
That said, the recently adopted limiting tone in the daily moving average (MA 50) is promoting growing negative momentum in the pair. If sellers resurface, initial support may arise from the recent low of $1,545 -$1,600 region ahead of the vital trough at the $1,800 level. From here, slightly higher the resistance section of $1,900 could play a key role in the pair’s shift to a stronger bullish bias.
ETH 4-Hour Chart: Ranging
After a deep technical rebound from the $1,545 support level on Thursday, Ethereum is still trading in a recovery mode for the week. Although the ETH/USD pair holds underneath the moving average (MA50) at $1,719, a bearish head and shoulders trend persists in the 4-hour time frame. The ETH/USD pair may be expected to decline into the $1,500 mark, dependent on the size of the range.
On the flip side, with bulls gathering strength, the time is fast approaching for a break towards the $2,000 psychological zone. The ETH/USD pair is only bullish if it is positioned past $1,719 while the main resistance levels are $1,800 and $1,900. Sellers may test the $1,600 and $1,500 levels if the ETH/USD pair exchanges beneath $1,719 intraday high.
Resistance Levels: $2,000, $1,900, $1,800
Support Levels: $1,600, $1,500, $1,350
Image Credit: Tradingview
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