Price Analysis

ETH Price Analysis: Bulls Regain Traction on $1,700 Floor

The Ethereum (ETH) price kept a firm tone against the US dollar and a basket of major cryptocurrencies moving into the weekend following prior days rebound in the market.

*Fresh strength returns to pressure the ETH/USD upper boundary
*The bulls regain traction on the $1,700 floor
*Ethereum Exchange outflow hits one month low

As a potential bullish trend resumes, fresh strength returns to pressure the ETH/USD upper boundary towards recapturing the $2,000 congestion zone after dips were contained. Amid the correction, the bulls regain traction on the $1,700 floor as goals remain beyond all-time high at $2,041. The crypto asset is currently second on the Coinmarketcap table, with a market cap of $209 billion and $23.58 billion in trade volume over the past 24 hours. The current ETH/USD spot price at $1,824 is up nearly 20% from the recent low set on Feb 27, and down 10% from the all-time high.

Also Read : Ethereum Price Prediction: Will ETH Price Hit $5000 in 2021

Ethereum Exchange Outflow Hits One Month Low

The Ethereum (ETH) reserve on exchanges is at its lowest level in two years, as the outflow from the Ethereum exchanges reaches its minimum in 1 month. Ethereum balances on cryptocurrency exchanges continue to decline daily, with the institutional accumulation of ETH becoming evident as Grayscale added 47,895 ETH over the past 30 days. The demand for ETH rose as the NFT marketplaces on the Ethereum network have significantly increased their trading volume.

ETH Daily Chart: Bullish

Upside risks dominated the ETH against the US Dollar on Friday. The ETH/USD pair edged higher from daily lows of $1,734 and it’s likely to continue higher during the following trading session. The potential target for bullish traders will be near the weekly high at the $1,931 level. If the ETH/USD pair trades below the $1,750 level, moving average (MA 50) at $1,700 could provide support for the token within this session.

Although the ETH has recovered sharply higher against the US dollar after its price crashed by nearly ten percent from the weekly highs. The pair has moved back to challenge the $1,900 resistance level, although bulls are struggling to move the price above this key area. The relative strength index (RSI) highlights that the trend of the daily chart is bullish while it trades past its midlines at 50. Today’s close above $1,800 would confirm a bullish near-term stance.

ETH 4-Hour Chart: Ranging

Ethereum (ETH) is looking increasingly bullish as it continues to gather strength around the 4-hour moving average (MA 50), at $1,800. The all-time-high for the ETH/USD pair, around the $2,041 level is the next major upside target for short-term bulls. If buyers can force a breakout above the $2,000 level then a major rally towards the $2,100 level remains extremely possible. In the case of a pullback, $1,700 would see strong buying interests.

After hitting today’s low at support area around $1,734, the price action has gone sideways for the lack of a strong catalyst. Overall the ETH/USD is attempting to emerge completely out of the consolidation range around the psychological $1,800 zone. An upside-looking RSI indicator has raised traders’ interest to buy into the rally at the psychological level of $1,800. A rally back above $1,900 could resume the medium-term uptrend beyond $2,000.

Key Levels
Resistance Levels: $2,100, $2,000, $1,900
Support Levels: $1,800, $1,700, $1,600

Image Credit: Tradingview

Note: coinpedia.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event.

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Tomiwabold Olajide

Tomiwabold is a currency trader and cryptocurrency analyst. A technical analyst, as well as an experienced fund manager, he has also co-authored several books on Forex trading. Tomiwabold pays great attention to cryptocurrency research, conducting a comprehensive price analysis and exchanging predictions of estimated market trends. He studied at the University of Lagos, Lagos.

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