Fundamentals
Over the past four days, the cryptocurrency market has been consolidating within a narrow range, with the total market capitalization experiencing a modest increase of just over 2.5% to US$2.72 trillion during the last seven days. These levels remain below the 200-day SMA, indicating that the balance of power continues to favor the sellers. This is a critical signal line differentiating between bullish and bearish trends.
It is also noteworthy that the market is stabilizing amidst declining trading volumes, suggesting that the current situation remains fragile despite the positive performance of the indices in recent trading sessions.
According to CryptoQuant data, Ethereum exchange reserves have increased by over 100,000 ETH since the beginning of this week. Over a weekly timeframe, reserves have increased by more than 270,000 ETH. This increase suggests that a bottom range may be emerging in the range-bound market.
Despite several on-chain indicators pointing towards a downward trend, the total staked value of ETH presents an anomaly, having increased by nearly 180,000 ETH over the past week. This suggests that a significant number of ETH investors still maintain a long-term bullish outlook.
Technical Analysis
Ethereum's price surged on Wednesday, breaking above the US$1,964 range. Bulls must now consolidate above the US$2,000 psychological level, maintaining it as support to reignite the bullish trend. A potential upside target lies above the US$3,005 level.
The Relative Strength Index (RSI) and Stochastic Oscillator are testing their neutral levels, suggesting a possible shift away from the prevailing bearish momentum in the short term.
Conversely, a significant price decline below US$1,800 could embolden bears, potentially driving the price towards the US$1,500 threshold.
Trading Recommendations
Trading Direction: Buy
Entry Price: 1962
Target Price: 3079
Stop Loss: 1705
Valid Until: April 3, 2025 23:55:00
Support: 1962, 1862, 1756
Resistance: 2073, 2554, 2865