Ethereum Price Forecast – Sharp Bearish Correction in Play, Good Time to Go Long?
Arslan Butt•Wednesday, March 31, 2021•2 min read
ETH/USD closed at 1837.97 after placing a high of 1857.18 and a low of 1784.76. On Tuesday, Ethereum prices extended their gains for the third consecutive session and rose above the 1855 level amid the bullish news about the network being adopted by online payments service provider Visa Inc. After the adoption of the Ethereum network to settle transactions in USD coin by Visa, the popularity of Ethereum has increased. The outlook for Ethereum prices has improved due to increased adoption by institutions and technicals supporting the bullish trend.
Throughout 2021, Ether has been making higher lows, and the current trend directs that by the next month, Ethereum prices will see 1800 as a bottom level. Traders and investors who do not usually rely on technical were also becoming optimistic that ETH/USD will rise after the latest news from Visa. The upcoming Ethereum 2.0 upgrade that will see the network transition from the inherently inefficient proof-of-work to a much stable and efficient proof-of-stake has also improved the outlook for Ethereum that could also be attributed as a factor behind the upward momentum in Ether prices.
On the flip side,
yield farming has become popular over the past year alongside the spike in decentralized finance; however, lately, the ability to earn good returns has been limited due to high transaction costs on Ethereum Network. This has resulted in exploring other alternative options outside the Ethereum network with a low fee environment. This drawback of the Ethereum network has been keeping a check on the rising prices of Ethereum.
Daily Technical Levels
Support Resistance
1730.67 1858.96
1645.14 1901.72
1602.38 1987.25
Pivot Point: 1773.43
ETH/USD is trading showing a strong bearish retracement to trade at 1,812 level, having violated the resistance area of 1,743 level. On the 4 hour timeframe, ETH/USD has violated the ascending
triangle pattern that’s suggesting odds of the bullish trend, but right after testing a resistance level of 1,871 level, it slipped lower. For the moment, the pair is likely to gain support around 1,770 and 1,744 levels. Let’s consider staying bullish above these support levels today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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