Ethereum (ETH) continues failing to reclaim the $2,100 resistance level, experiencing a decline of 6% over the past week. As the second largest cryptocurrency trades within critical “make or break” levels, analysts suggest it may remain in a sideways trajectory before embarking on another significant move.
Ethereum Trades At 2023 Levels
After closing its worst first quarter since 2018, Ethereum has continued to move sideways, oscillating between the price range of $1,775 and $1,925. Following a recovery last Monday, Ethereum was trading only 6% below its monthly opening, giving rise to hopes of a positive monthly close.
However, the cryptocurrency has witnessed a drop of over 10% from the previous week’s high, concluding the first quarter 45.4% lower than its January opening and 18.6% down from its March start. This performance marks the worst streak in seven years for Ethereum, as it recorded four consecutive months of loss for the first time since 2018.
Daan Crypto Trades noted that ETH is still “trading in no man’s land,” despite recent attempts to break above its current range. In early March, Ethereum fell below the $2,100 mark, erasing its 2024 gains and reaching a 16-month low of $1,750.
The trader emphasized that pivotal levels to monitor include a breakdown below $1,750 or a breakout above $2,100, warning that “anything in between is just going to be a painful chop.”
Merlijn The Trader highlighted that Ethereum is currently trading at levels similar to 2021, within the breakout zone that led to ETH’s all-time high (ATH). He noted that the fundamentals and institutional demand are considerably stronger now compared to four years ago.
“ETH is resting on the same monthly support that sparked the 2021 bull run. If it holds, a target of $10K is in play. If it breaks down… things could turn dire,” he elaborated.
More Chop Before ETH’s Next Move?
Analyst VirtualBacon anticipates that Ethereum will continue to trade within its existing price range for the time being. He noted that ETH’s price has retraced to retest the last bear market resistance levels, erasing all gains made since November 2023.
While viewing this range as a “good value range,” the analyst does not foresee an immediate breakout but believes that a bullish breakout is “simply a matter of time” over longer timeframes.
“Ethereum typically rallies when the Federal Reserve pivots and the global liquidity index begins to rise. This is when the ETH/BTC ratio tends to turn upward again, leading the altcoin market in general,” he concluded.
Ali Martinez pointed out that the number of large ETH transactions has plummeted by 63.8% since February 25, dropping from 14,500 to 5,190, which signals a decline in whale activity within the network. He further observed that whales had sold off 760,000 ETH over the last two weeks.
As of this writing, Ethereum is trading at $1,903, reflecting a 6% drop in the weekly timeframe.
