Ethereum (ETH / USD) charts and analysis
- The outlook looks positive, but challenges lie ahead.
- ETH / BTC distribution highlights Ethereum’s recent strength.
Ethereum began to move further higher, after falling between November 2021 and February 2022, with a series of higher lows supporting the movement higher. The positive winds of these higher lows have now pushed ETH / USD to the lower limit of a major zone of resistance built from a group of previous swing lows. This zone, between $ 3,050 and $ 3,410, is likely to take time to fully break and Ethereum could 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 top, the multi-month series of lower highs will be convincingly broken, adding further positive momentum to the move. The 50-day simple moving average adds a layer of protection to any short-term sale.
Ethereum Daily Price Chart – March 24, 2022
Chart via TradingView
The ETH / BTC distribution also highlights Ethereum’s return to favor. The second-largest currency by market capitalization is currently outperforming Bitcoin with the spread reflecting at a previous horizontal low around 0.0645. This setback, and the break of the previous downward trend, looks like consolidation before a potential move back to the February 3 high of 0.07512. The 50-day sma again serves as first-line support. A long road to hike before the peak of December 9 is threatened, but a target nonetheless.
Ethereum / Bitcoin (ETHBTC) Distribution Chart – March 24, 2022
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