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Technical Analysis for ETHUSD for 4th March 2022

Ethereum Drops 15% from $3k as ETH Struggles for Direction

Ethereum's EIP-1559 has destroyed over $5.6 billion of ETH since activation. The coin will soon become deflationary with supply lower than emission.

Past Performance of ETH

ETH prices are lower when writing, dropping from the $3k resistance level. It follows the same script as BTC, retracing from the psychological resistance line as crypto markets struggle for direction. At the time of writing, ETH is down 15 percent from February 2022 highs as a series of lower lows prints out.

Ethereum Technical Analysis

There are hints of weakness and waning upside momentum based on the ETHUSDT price performance in the daily chart. Although fundamentals are solid, ETH bulls are struggling to add to their longs, confirming buyers of late last week and breaking above the current consolidation. Even so, there could be a reason to accumulate on every pullback, provided prices are held above $2.5k and $2.3k. These key support lines may anchor the next leg up once there is a surge above $3k. At spot rates, risk-averse ETH traders could wait for trend definition above $3k or $2.5k before committing. On the flip side, due to the higher highs from January and February 2022 lows, aggressive traders may load on dips above $2.5k, setting sights on $3k.

What to Expect of ETH

Despite the wave of selling pressure from the middle of this week, buyers still stand a chance. A break above $3k or $2.5k would shape the medium-term trend of ETH.

Resistance level to watch: $3k

Support level to watch: $2.5k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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