With Bitcoin standing at the $83,000 mark, Ethereum is struggling to regain its bullish momentum. Currently, it is at $1,936 with an intraday recovery of 0.66%. However, the ETH price has bounced off significantly from its 24-hour low at $1,851.
Will this short-term bounce back in the ETH price reclaim the $2,000 milestone for a fresh recovery run? Let’s find out.
ETH Price Outlook: Resistance Near $2,000 in Focus
In the daily chart, the ETH price trend showcases a quick reversal from its crucial support near $1750. As it bounces off from a horizontal level, Ethereum gained 3.11% yesterday to create a bullish candle.
This hints at a potential V-shaped recovery as the bullish trend continues. However, the lack of momentum is clearly visible as hinted by the declining MACD and signal lines.
Furthermore, the negative alignment of the 20, 50, 100, and 200-day EMA lines maintains a clear downtrend picture. Based on the price action analysis, the uptrend is likely to detest the lost $2,000 psychological mark.
This could reinstate the bearish trend at hand with a post-retest reversal. In such a case, a plunge to $1750 is highly possible. Below this, the $1500 psychological mark will be the crucial support level.
On a bullish front, if the rising Bitcoin price results in an overall market recovery, Ethereum could retest the 20-day EMA line at $2,242.
Analyst Warns Rising Ethereum Supply on Exchanges
As per the crypto analyst Ali Martinez, Ethereum has recently witnessed a massive inflow of supply over the exchanges. As per the analyst, more than 100,000 ETH have been moved to exchanges in the past 48 hours.
This has driven the supply on exchanges to $9.23 million, to 9.23 million ETH. With the massive supply inflow, the analyst warns of a pullback in ETH prices.
Another Day of Outflow
On March 11, as Ethereum witnessed a minor recovery, the US Ethereum Spot ETFs recorded a minor outflow of $21.57 million. Fidelity maintain an outflowing nature similar to their Bitcoin ETF counterparts.
On March 11, Fidelity offloaded $9.75 million worth of ETH. With another day of outflow, U.S. ETH Spot ETFs marked their fifth straight day of losses. Since February 20, they have recorded only one day of inflow.
GoogleNews