Ethereum (ETH) Trending After a Return to $3,000

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Updated: Mar 24, 2022, 05:42 GMT+00:00

Following Ethereum's return to $3,000, the next price target will be $3,500. Avoiding a return to sub-$2,900 will be key to support the recent upward trend.

Cryptocurrency Ethereum with One Dollar Bill as financial concept.

Key Insights:

Ethereum (ETH) wrapped up Wednesday at $3,000 for the first time since mid-February.
On CoinMarketCap, Ethereum was briefly the top trending coin this morning.
This week, technical indicators are flashing green following the 100-day EMA cross through the 200-day EMA.

It was a bullish day for ETH on Wednesday, with ETH joining the top ten crypto majors in positive territory.

Following a 2.59% gain on Tuesday, ETH rose 2.26% on Wednesday to end the day at $3,037.

The bullish session saw ETH test the First Major Resistance Level at $3,050 before easing back.

Market Demand Drives ETH Back to $3,000 Mid-Week

News of Three Arrows Capital staking 36,401 ETH into Lido’s liquidity pool, Curve stETH pool, delivered support.

Adding further support was news of a second ETH stake into the Lido liquidity pool. According to reports, an Ether address including the word “fund” staked 6,993 ETH to the Curve stETH pool.

ETH Price Action

At the time of writing, ETH was down by 0.51% to $3,022. A bullish start to the day saw ETH strike an early high of $3,081 before falling into the red. The early rally saw ETH test the First Major Resistance Level at $3,075 before easing back.

Broader crypto market support would be needed to deliver a fourth consecutive day in the green.

Technical Indicators

ETH will need to avoid the day’s $3,001 pivot to make another run on the First Major Resistance Level at $3,075. ETH would need the broader crypto market to support another breakthrough to $3,050 levels.

An extended rally would test the Second Major Resistance Level at $3,113 and resistance at $3,150. The Third Major Resistance Level sits at $3,225.

A fall through the pivot would test the First Major Support Level at $2,963. Barring an extended sell-off, ETH should avoid a return to sub-$2,900. The Second Major Support Level sits at $2,889.

Avoiding the day’s pivot will be key to supporting further upside.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. ETH continues to hold above the 50-day EMA currently at $2,888.

The 50-day EMA pulled away from the 100-day EMA this morning, delivering price support. The 100-day EMA has also pulled away from the 200-day EMA, bringing the Major Resistance Levels into play.

Avoiding sub-$2,900 and the 50-day EMA would support a return to $3,150.

ETH needs to avoid the 50-day EMA to bring $3,150 into play.

About the Author

Bob Masonauthor

With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.

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