ETH price analysis March 23 to 29: Ether might remain range-bound this week
The bulls have held the strong support level of $79.83, which is a positive sign. But the bears are offering resistance at higher levels.
During a panic, traders do not differentiate between asset classes. Their main goal is to sell every asset in the portfolio and hoard cash. Currently, the huge number of coronavirus-related deaths in countries such as Italy and Spain, and the rapidly rising rate of cases in the US, has led to incessant selling across the board. Due to this, the correlation between the S&P 500 with Bitcoin and Ether is at record levels, according to data from Coin Metrics.
Another data shows that the total exchange deposits of Ether have increased to $14.5 million, surpassing its previous high in December 2018. This suggests that large investors could be looking to lighten their Ether holdings. While the fundamentals look weak in the short term, let’s study the charts and do the Ether price analysis to see if we find any reversal patterns.
The price analysis of the daily chart shows strong buying near the critical support of $79.83. From a low of $88.33 on March 13, the price recovered to $153.40 on March 20, which is a rise of 73.66 per cent.
However, the bulls could not push the price above the overhead resistance at $157.36 and the 20-day EMA. This shows that buying dries up at higher levels. Currently, the bulls are trying to keep the price above $115. If successful, another attempt by the bulls to push the price above $157.36 is expected.
ETH price technical analysis: weekly chart
Ether has been stuck inside a large range of $362.87-$79.83 for over one and a half years. For the past two weeks, the bulls have held the support of the range, which suggests buying at lower levels. However, the bulls are struggling to push the price back above $157.36. This suggests that bears continue to be active at higher levels.
We anticipate the price to remain range-bound between $79.83 and $157.36 for the next few weeks. A breakout of $157.36 will be the first indication that bulls are back in the game. Above $157.36, a move to $200 and above it to $280 is possible.
Conversely, if the bears sink the price below $79.83, it will be a huge negative as it will start a new downtrend. The next support on the downside is $50. The Ether price analysis of the weekly chart points to a possible range-bound action for the next few days.
ETH price technical analysis: daily chart
Nevertheless, if the bears sink the price below $115, a drop to $100 and below it to $79.83 is possible. The 20-day EMA is sloping down and the RSI is in the negative zone, which suggests that bears have the upper hand.
The price analysis of the daily chart points to a range-bound action but with a negative bias. Do we spot any trading opportunities for this week?
ETH price technical analysis: possible trade setups this week
As the overall trend is down, we do not suggest buying on dips. Traders should wait for the price to scale and close (UTC time) above $157.36 before buying. The target levels to be kept in mind are $180 and $200. However, if the bulls fail to propel the price above $157.36, Ether might remain range-bound for a few days. We do not find a reliable trading opportunity inside the range until it is well defined.
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