After two years of underperformance, Ethereum rallied from the start of 2024, regaining its previously lost value and consolidating its position as the most powerful altcoin on the market. However, a correction was bound to happen, with historical data showing that this is the normal way the market works during growth cycles. Although losses may seem dangerous from an outsider’s perspective, they are important for the well-being of the market and investors, as perpetually rising prices are a negative situation. However, if consolidation takes place over a long period of time, it may result in losses.
Although this current cycle is not expected to be as difficult as its predecessors, investors and analysts are still keeping a close eye. Ethereum price chart and estimate that it will take some time for the market to fully recover. That’s why having a sound strategy that leaves plenty of room for movement and change remains important.
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Resistance
As in the rest of the financial world, the resistance level in the crypto ecosystem is the price point where the asset receives the most selling pressure and, as a result, is prevented from moving higher. Historical data, pivot levels and trend lines are some of the most common indicators that can help determine support levels. Currently, Ethereum is facing pressure around the $3,600 level, indicating that there are still obstacles on the asset’s path to success. Data and research point to the direction of the resistance zone in that area as well.
In/Out of the Money Around Price, commonly referred to as IOMAP, is an indicator that includes the most closely related price clusters within 15% of the price in both indicators. The measurements are designed to indicate key selling and buying areas that should act as both resistance and support. The data collected from IOMAP can be used to make estimates about the current market as well. So far, the statistics indicate that the resistance zone is placed somewhere between $3,534 and $3,639. That represents a pretty good spot, with nearly 1.7 million addresses holding 4.97 million Ether coins.
Depending on whether the area records the highest amount of activity from sellers in the short term, the price should retreat further, start moving higher, or stop.
Bearish trend
The Bitcoin split in 2020 kicked off one of the most intense crypto rallies in the entire history of the market. Although Ethereum and altcoins operate as completely separate digital entities, they were nevertheless affected by the changes and grew significantly in 2021. During this time, many crypto coins reached their highest levels, and the market performed better than it had. done in a very long time.
What followed in 2022 was a decline from the initial optimism and growth in size, causing many coins to lose large portions of their value. After that moment, investors were focused on growth and development, hoping that the environment would recover quickly. Unfortunately, this was not the case, and even the 2023 market ended up disappointing, causing instability and uncertainty rather than growth.
2024 also started strong but is now going through a correction episode. On March 12, ETH reached a 27-month high, standing at $4,093, a major performance and a sign of a strong rally. The price then fell but managed to recover, indicating to investors and researchers that the current trading environment is much stronger and more mature compared to what came before. Nevertheless, most investors are convinced that the bullish trend has quieted down a bit in the Ethereum space, at least for now.
A bearish trend has emerged on the daily chart, and there are indications that it will continue unabated for a long time, something that many investors do not want. It is clear that some of them are also disappointed, considering the fact that ETH managed to escape the same market trend not long ago. In addition, most investors believe that the current market is unlikely to bring the same destruction as the 2022 bear market, and most think that their assets and portfolios are completely safe and sound.
The bulls are relying on lower boundary support, somewhere around $3,497. The RSI shows that the bears were selling at $3,600 in the recent session. If the daily candle closes below the $3,497 level, it will show a clear bearish breakout. Since the crypto market is always volatile compared to its traditional peers, it is still uncertain how the situation will evolve, which is why it is important for investors to stay aware of the changes happening in the trading environment.
Redistribution of lands
Decentralization is a fundamental feature of the Ethereum space, the reason why many investors flock to the crypto asset in the first place. However, concerns about the possibility of a single location have been high among investors’ concerns over the past year. Since the Shanghai Merger made catch-and-drop a reality, investors have been increasingly concerned about its ability to unify the market.
While the initial concern involved predicting that the number of withdrawals would disrupt the market, the opposite happened, and after the first surge of withdrawals, investors began to post record numbers. This further reduced yields and caused some to wonder if some insurers were getting unfair advantage over other market users. Recently, Vitalik Buterin released a blog post that addresses this concern in particular while presenting a trading platform for a possible solution.
He suggested imposing sanctions on the guarantors based on their annual failure rate, and in the event that many of them fail together, they should receive a higher penalty compared to the situation where they all fail independently. The idea here is that if the validator is equally large, the mistakes they make can be replicated across the various identities they hold.
To summarize, the Ethereum market is enjoying the best performance this year, but the future is still uncertain in terms of consolidation. If you are an investoravoid any trading activity that seems too risky, as it can cause more losses than gains.
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