Ethereum Price Analysis: ETH/USD Will Drop To $202 By March 5
Ethereum cryptocurrency rate (ETH) has fallen by 10% as a result of a powerful downtrend that occurred on February 24 over the past day. The bulls failed to defend the key support zone in the region of $ 225, so ETH/USD should become cheaper by $ 202 by March 5th.
Key Points
Over the past two days, the price of Ethereum has fallen by more than 25%, the asset rate has rolled back to the level of $ 220, from which a bullish trend began on February 11.
At the moment ETH/USD is consolidating in the range above $ 220.
On the hourly chart, a downtrend line with a resistance of $ 230 was formed.
This week, traders actively dumped Ethereum. Sellers broke through the support areas of $ 250, $ 230 and $ 220. The price reached a record low at the level of $ 209 (Gemini exchange data). During the correction the resistance barrier of $ 222 was broken, and the cost of ETH reached $ 224. This mark coincides with the 50% Fib recorded during the decline in the ETH/USD from $ 241 to $ 209.
At the moment, the main resistance zone is at around $ 230 (61.8% of the Fib). Thus, an upward movement can occur only if buyers break through this barrier. The downward trend will meet support barriers in the areas of $ 205 and $ 200. If the bears overcome the second barrier, then the cost of Ethereum will drop to $ 178.
Why Will Ethereum Rise In Price In the Medium Term?
There are three factors that indicate a bull trend in the Ethereum market:
- Historical. ETH/USD fell to $ 230 and then soared to $ 334 in 2019.
- Technical. The pivot point is at $ 202.
- Trending. The uptrend line of January 2 has not yet been overcome.
ETH will fall in price to $ 202 in the near future. Then the ETH/USD course will push off from the support zone and begin to grow rapidly. With a high degree of probability, the price of Ethereum will reach $ 270 by mid-March.
During the current session, the ETH/USD rate may well be adjusted to $ 230, because during the dump a large number of coins were drained, and market makers will buy out coins to replenish stocks and reduce the volume.
Technical indicators:
⦁ 4 hours MACD is in the area of a bearish trend.
⦁ 4 hours RSI is below 40 (in the neutral area).
⦁ The main support level is $ 205.
⦁ The main resistance level is $ 230.
Source: en.bit.news
