Ethereum (ETH) Price Outlook:
- Ethereum aims for the $4,000 technical resistance level.
- The ETH/BTC spread approaches previous resistance levels.
Market Overview
Ethereum has seen a remarkable rise of over 80% since hitting a low of $2,165 on January 23, maintaining a consistent pattern of higher highs and higher lows. Despite a significant short-term dip on March 5, the cryptocurrency quickly rebounded, demonstrating the ongoing strength of its upward trajectory. If market sentiment remains positive, Ethereum is likely to test the $4,000 resistance level. As always with the volatile cryptocurrency market, effective risk management is essential.
Economic Events and Market Impact
Today’s US Jobs Report can impact various asset classes, including cryptocurrencies, in either direction. Therefore, investors should monitor the report’s release at 13:30 for any potential market movement.
For updates on economic releases and events that could influence the market, consult the DailyFX Economic Calendar.
Technical Analysis
The weekly Ethereum chart highlights the strength of the recent upward movement, bringing ETH into overbought territory as indicated by the Commodity Channel Index (CCI) at the bottom of the chart. This condition needs to normalize for Ethereum to continue its upward trajectory. Above the $4,000 resistance, the descending highs from October 2021 pose challenges leading up to the mid-May 2021 swing high at $4,400. Above that level, Ethereum’s all-time high at $4,860 becomes the next target. Initial support on the weekly chart is around $3,585.
Ethereum Weekly Price Chart
Ethereum Spot ETF Potential
Ethereum has outperformed Bitcoin this week, recovering a substantial portion of its earlier underperformance this year. Resistance around the 0.6050 area has held firm since early January and may remain strong on subsequent attempts. A breakthrough above this level would shift focus to 0.6260. The ETH/BTC spread remains above all three simple moving averages, and although the CCI indicator approaches overbought territory, it remains well below the two previous heavily overbought readings seen earlier this year.
Ethereum/Bitcoin Daily Spread Chart
