“Ethereum Price Maintains Consolidation, Where is the Potential Entry Zone?”

• ETH continues its consolidation range until the weekend.
• Bears gained a slight leverage after the recent accumulation.

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Since March 17, Ethereum [ETH] has been consolidating in the price range of $1,715 to $1,840. In other words, ETH has remained in a sideways structure for the past seven days and could continue until the weekend. During the same period, Bitcoin [BTC] fluctuated between $26.67K and $28.94K.

Specifically, BTC fell from 28K to the 26K region after the Fed raised interest rates by a quarter point on Wednesday (March 22). However, it rebounded on Thursday (March 23) after hints that Fed rate hikes had peaked and relaxation was likely.

Is breaking out of the range likely this week?

ETH followed BTC’s recovery and tested its upper range at $1,855.5. Over the past seven days, ETH’s overall price movement has been drawn in a parallel channel pattern with a mid-level of $1,779.18. The $1,855.5 price ceiling could pull ETH towards the middle level or lower boundary of the channel. At press time, ETH was valued at $1,809.30.

Short-term bears could pull ETH down to $1,779.18. However, they need to overcome the $1,779.18 and 20 EMA ($1,784.5) barriers. A close below the mid-level of $1,779.18 could trigger more aggressive selling and push ETH down to $1,715.

Bulls have two levels to watch. The mid-point of $1,779.18 could offer a stable recovery, especially when BTC attempts to retest $28.94K. The other key support level to watch is the lower boundary of the channel at $1,715. However, breaking out above the consolidation range could offer bulls a chance to retest August 2022 levels. However, short-term bulls need to overcome the $1,917 barrier.

Relative Strength Index (RSI) has remained above 50 for the past two weeks, indicating that ETH is bullish. During the same period, OBV (On-Balance Volume) increased but showed fluctuations since March 17, indicating a weakening of strong buying pressure.

The long/short ratio gave sellers a slight edge

According to Coinglass, the long/short ratio of ETH on major exchanges showed that sellers gained a slight leverage on the 4-hour timeframe. This indicates that most investors are bearish on the asset in the near term, which could push ETH back to $1,779.18.

However, ETH saw a short-term accumulation shown by the increase in non-exchange inflows. Similarly, at press time, the supply of ETH on exchanges decreased, indicating that less ETH was being moved to CEXs for sale. While the weighted sentiment is still negative, short sellers should pay attention to the recorded accumulation trend. Watching BTC’s price movement could help make better moves.

Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.