Ethereum has once again dropped below the $2,000 mark, a key psychological level that it briefly surpassed earlier this week. The recent market-wide correction has hindered Ethereum’s recovery efforts, leading to a decline in sentiment that could potentially result in a further drop or a strong mid-term rebound.
Despite the cautious short-term sentiment, a notable crypto analyst has shed light on a significant technical development that presents a bullish outlook for the Ethereum price.
The 300-week moving average has once again come into focus for Ethereum, marking only the second time in history that the cryptocurrency has touched this level. The first instance occurred in June 2022 during a market crash that saw Ethereum plummet to $880 before beginning a gradual recovery.
This recent touch of the 300-week moving average comes at a time when Ethereum is struggling to sustain levels above $2,000. Looking back at the previous touch of this moving average, it sparked a long-term recovery phase that saw Ethereum’s price surge over 140% in the following eight weeks, eventually surpassing $2,100 in August 2022.
CryptoBullet, a prominent analyst, emphasized the historical significance of the 300-week moving average as a crucial support level. Despite the current bearish sentiment, he believes that such macro-level support often sets the stage for a substantial bounce. He has set a price target for this upcoming bounce between $2,900 and $3,200, contingent on how Ethereum reacts to this level.
While Ethereum remains under bearish pressure for now, reclaiming the $2,000 zone is essential for any sustainable bounce towards the $2,900-$3,200 range. Additionally, the recent price correction has heightened the risk of Ethereum closing March below the 3M Bollinger bands, currently hovering around $2,000, which could pose challenges for the cryptocurrency.
If CryptoBullet’s analysis proves accurate, Ethereum could experience a period of heightened price action in the coming weeks. As of the latest update, Ethereum is trading at $1,907, reflecting a 5.82% decrease in the past 24 hours.
In conclusion, Ethereum’s price dynamics are currently influenced by various factors, including technical indicators and market sentiment. Traders and investors are closely monitoring developments to gauge the cryptocurrency’s future trajectory.