ETH price analysis for March 16-22: the coin is likely to remain range-bound this week
As the weekly and daily charts are negative, how can you trade the coin this week?
0'>Ether (ETH) had been holding up well until the massive sell-off on March 12. Crypto data analysis firm Santiment had highlighted on March 5 that the ETH whales were building positions. However, just a few days later, the company found that several ETH whales booked profits on their positions leading up to the fall. This shows that the whales can quickly turn around and sell their holdings and the retail traders should practise due diligence and not follow the whales blindly.
On March 12, Binance doubled the fees for ETH withdrawals, which increased the burden on the traders. While the current fall is a litmus test for cryptocurrencies, Ethereum co-founder and founder of Cardano, Charles Hoskinson, said that the “economic order of the 20 th century” was dead and the world would become decentralised in the future.
After the carnage of last week, let’s analyse both the long-term and short-term charts to see whether the downtrend will resume or if there is a reversal possible this week.
ETH price technical analysis this week
The Ether price analysis of the weekly chart and the daily chart shows panic selling by the traders. Usually, bottoms are formed after such a phase of panic selling. Do we spot the possibility of a reversal? Let’s study the chart patterns and do the Ether price prediction for the period between March 16 to 22.
ETH to USD chart: weekly
The bulls could not keep Ether above the moving averages, which resulted in sharp selling that dragged the price to $88.33. Though the price bounced off this level, the bulls are struggling to sustain the higher levels.
Therefore, we anticipate the bears to make another attempt to sink the ETH to USD pair below the critical support at $79.83. If successful, the downtrend will resume. The next level to watch on the downside is $50.
On the other hand, if the pair bounces off the support at $79.83, the bulls will attempt to push the price back above $142.34. If successful, it is likely to attract buyers.
The Ether price analysis of the weekly chart shows that the price is at a critical juncture. If the bears sink the price below the critical levels, a downtrend is likely to start. Does the Ether price analysis of the daily chart also point to a period of weakness this week? Let’s find out.
ETH to USD chart: daily
Ether broke below the 200-day SMA at $179 on March 12 following which the selling momentum picked up. Though we had expected $157.36 to provide some support, that did not happen. The selling dragged the price close to the critical support at $79.83 on March 13.
However, the failure of the bears to break below this level attracted buying by the aggressive bulls. This resulted in a relief rally, which hit a roadblock at $142.34. The failure of the bulls to sustain the higher levels will attract selling by the bears.
If the ETH to USD pair plunges below $79.83, the downtrend will resume. The downsloping 20-day EMA and the RSI in the oversold zone show that bears have the upper hand.
Conversely, if the bulls aggressively defend the support at $79.83, a few days of range-bound action is possible. The pair is likely to turn positive in the short term on a break above $142.34-$157.36 resistance zone.
As both the weekly and the daily charts are negative, how can traders be positioned this week?
Ether price analysis and prediction: how to trade it
Both the long-term and short-term trend is down. If the bears sink the price below $79.83, the downtrend will resume. Therefore, we suggest traders remain on the sidelines until a bottom is confirmed.
If Ether bounces off $79.83, it might be setting up for a few days of consolidation. We will wait for the boundaries to be defined before suggesting a trade in it.
FURTHER READING: What is Ether? Your simple guide to the cryptocurrency
FURTHER READING: Ether and Ethereum: what is the difference?