Ether price news this week March 02-08: the biggest altcoin is likely to start a relief rally this week
Let’s analyse the charts and do the Ether price prediction
The Ethereum community has raised concerns on the proposed replacement of ETHhash, the current hashing algorithm, with the Programmatic Proof-of-Work (ProgPoW) algorithm. While the supporters of ProgPoW believe that the change will prevent a miner-led fork during the transition to proof-of-stake, the opponents believe that it can cause contentious forks.
Ethereum futures volume has been picking up this year, which shows that the institutional players are willing to diversify away from Bitcoin. In February, there were four occasions when Ether’s daily volume across derivative exchanges topped $5 billion, which is a positive sign.
As the interest among institutional investors increases, does the Ether price analysis signal a buy at these levels? Let’s find out.
Ether price prediction: March 02-08
The Ether price analysis of the weekly chart shows a balance between the bulls and the bears. On the daily chart, we find that the bears have the upper hand. Let’s analyse both these charts and do the Ether price prediction for the period between March 2nd to March 8th.
Ether price chart: weekly
Ether also could not escape the broad sell-off last week. It plummeted after it broke below the low of the week before at $242.27. The biggest altcoin can now drop to the moving averages, which are at $198 and $194. We expect the bulls to mount a strong defence in the $200-$194 zone.
Both moving averages are flattening out and the RSI is just above the midpoint, which suggests a few days of consolidation.
If the ETH to USD pair turns around from the current levels or rebounds off the moving averages, the bulls will attempt to resume the up move. We anticipate resistance at $239.30 but if this level is crossed a retest of the recent highs at $289.33 is possible.
Our view will be invalidated if the bears sink the price below the moving averages. In such a case, a drop to $157.36 is possible.
The Ether price analysis of the weekly chart shows that both buyers and sellers are in a state of balance and a range-bound action is likely. Let’s do the Ether price analysis of the daily chart to spot the critical levels to watch out for.
ETH to USD chart: daily
Ether broke down of the symmetrical triangle on February 25. The pattern target of the breakdown of this setup is $183.95. However, the bulls are currently attempting to defend the support at the 50-day SMA, which is close to the trendline.
If the ETH to USD pair bounces off the 50-day SMA, the bulls will again attempt to carry the price above $239.30. If successful, the uptrend is likely to resume. The first target would be $278.08 and above it $289.33. The pair is likely to pick up momentum above this level.
Contrary to our assumption, if the bears sink the price below the 50-day SMA, a fall to the next support at $157.36 is possible. The 20-day EMA is sloping down and the RSI has dipped below 50, which suggests that bears have the upper hand.
Ether price prediction for March 02 to 08: how to trade it
The fall on February 26 triggered our suggested stop loss of $235 on the long positions. Nevertheless, if the bulls can push the price back above $239, we expect a move higher.
Therefore, traders can buy on a close (UTC time) above $239 and keep a stop loss at $209.
In case the price dips below $209 before moving up, the traders should avoid bottom fishing at lower levels. It is better to wait for a new buy setup to form before initiating any long positions.
FURTHER READING: What is the Ethereum market cap, and will it grow in 2020?
FURTHER READING: Ether and Ethereum: what is the difference?