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Ethereum (ETH/USD) Outlook – Positive and Challenging in Equal Measures


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ETHEREUM (ETH/USD) CHARTS AND ANALYSIS

  • The outlook looks positive but challenges lay ahead.
  • ETH/BTC spread highlights Ethereum’s recent strength.

Ethereum Is Predicted To Break New ATH In The Near Future, Really?

Ethereum is starting to move further higher, after slumping between November 2021 and February 2022, with a series of higher lows underpinning the move higher. The positive tailwinds from these higher lows have now pushed ETH/USD to the lower boundary of an important zone of resistance built from a cluster of previous swing lows. This zone, between $3,050 and $3,410, will likely take time to break fully and may see Ethereum trade sideways to slightly higher over the coming weeks in a ‘two steps forward, one step back’ pattern. If Ethereum breaks out of this zone to the topside, the multi-month series of lower highs will have been broken convincingly, adding further positive momentum to the move. The 50-day simple moving average adds a layer of protection to any short-term sell-off.

ETHEREUM DAILY PRICE CHART – MARCH 24, 2022

Ethereum (ETH/USD) Outlook – Positive and Challenging in Equal Measures

Chart via TradingView

The ETH/BTC spread also highlights Ethereum’s return to favor. The second-largest coin by market cap is currently outperforming Bitcoin with the spread bouncing off a prior horizontal low around 0.0645. This rebound, and the break of the previous downtrend, look to be consolidating before a potential move back to the February 3 spike high at 0.07512. The 50-day sma again acts as first-line support. A long way to go before the December 9 high is threatened, but a target nonetheless.

ETHEREUM/BITCOIN (ETHBTC) SPREAD CHART – MARCH 24, 2022

Ethereum (ETH/USD) Outlook – Positive and Challenging in Equal Measures

What is your view on Ethereum – bullish or bearish?

 

Mar 24, 2022 |  Nick Cawley, Strategist  | DailyFX

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