As Bitcoin momentarily breaks below the $85,000 mark, Ethereum is back below $1,900. Currently, the ETH token trades at a market price of $1,889, with a recent low at $1,861.
Creating its fourth consecutive bearish candle, the downfall in Ethereum price warns of an extended correction. Will this result in a $1,542 retest? Let’s find out.
Ethereum (ETH) Price Analysis
In the daily chart, the ETH price trend showcases a bullish failure to sustain the short-term recovery. The downfall reversal recovery run retests the overhead supply zone near the $2000 mark before taking a bearish turnaround.
With four consecutive bearish candles starting from an evening start pattern, ETH is back at $1800 levels. Currently, the intraday pullback of 5.79% creates a bearish engulfing candle and undermines the prevailing recovery.
As the bearish trend gains momentum, the ETH price trend is likely to break below the $1867 previous low. The bearish turnaround reflects a bullish failure to sustain above the 20-day EMA line.
Furthermore, the sudden turnaround has warned of a potential bearish crossover in the MACD and Signal lines. Thus, the technical indicators maintain a bearish viewpoint.
Institutions Show No Sign of Support
Despite several bullish indicators, institutional support for Ethereum has yet to materialize. Since March 5, ETH ETFs have not recorded any inflows, except for a single day on March 4, when they saw an inflow of $14.58 million.
On March 27, Ethereum ETFs experienced anet outflow of $4.22 million, driven by $2.21 million from one source and $2.01 million from Fidelity. As of March 27, the cumulative net inflow for Ethereum ETFs remains at $2.40 billion.
Ethereum Price Targets
Based on the daily price chart, the sudden downfall despite the declining institutional support warns of an extended correction. The immediate support level for ETH below the $1867 mark is at the $1542 horizontal level.
This highlights a downside risk of nearly 18%. However, in case of a bullish comeback, the ETH price will likely reface the overhead supply zone at close to the $2000 psychological mark.
Also Read: Shiba Inu’s 35% Recovery Hits a Snag: Will the $0.000010 Support Hold?
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