Ethereum has endured a rather solid month of headwinds in February as it has mirrored the broad cryptocurrency market. As the second biggest digital asset, Ethereum certainly helps set the tone within the speculative world of cryptocurrency. ETH/USD was able to reach a high of nearly 3285.00 on the 10th of February, but since then has experienced an incremental push backwards. The highs of February did spark a temporary chant among some traders the long bearish trend within ETH/USD was over, but that has failed to be proven.
As the month of March gets set to begin ETH/USD is once again near suspicious lower support. The current price of Ethereum is traversing near the 2600.00 mark and this is after faltering from short term highs of approximately 2870.00 over the past few days. Many ‘news’ elements are being heard within the broad financial markets, including cryptocurrencies as nervous sentiment is generated because of the war which Russia has initiated against Ukraine.
Before going into last weekend, some financial assets did stage a brief rally and ETH/USD did climb from a low of nearly 2300.00 up to heights of 2870.00 within a couple of days. However, another downturn has occurred within ETH/USD, and a correlation which may be looked for by technical cryptocurrency traders trying to compare its results to technology equities may not have viable evidence.
ETH/USD in the short term remains in a rather dangerous value range. While the month of February did produce solid gains higher, they largely occurred in the first two weeks, and since then headwinds have seemingly pushed back Ethereum to a vantage point which reflects nervous sentiment. For speculators to believe ETH/USD is about to make a serious push upwards and turn its fortunes around for a prolonged amount of time, not only will the 3000.00 ratio need to be surpassed, but the 3300.00 will have to be challenged too.
On the 4th of January ETH/USD was trading near the 3900.00 level, but by the second week of January Ethereum found the 3400.00 very tough to surpass higher. Speculators may want to believe a turnaround in ETH/USD is overdue, but the bearish trend remains a dominant feature. Upwards momentum will need to be displayed and sustained to change behavioral sentiment among speculators.
ETH/USD Outlook for March:
Speculative price range for ETH/USD is 1925.00 to 3550.00.
As ETH/USD trades next to the 2600.00 level traders may remain nervous. If the current price level of Ethereum falters and is not able to maintain this current support level it could spark another wave of selling within ETH/USD. If the 2500.00 were to prove vulnerable and the 2400.00 ratio were to be flirted with this would be dangerous, because February’s low of nearly 2300.00 on the 24th was essentially only one week ago.
Plenty of nervous sentiment remains within the broad cryptocurrency market and traders will certainly want to see dynamic price action upwards to reverse the negative path. If ETH/USD were to fall below February lows this would be a very negative signal and the cryptocurrency could traverse towards January depths rather easily.
Traders who suspect the long bearish trend is drawing to a close should make sure their risk management skills are being practiced. An upwards trend certainly may be within the cards for ETH/USD, but the cryptocurrency needs to prove it can sustain short term highs and not suffer serious setbacks in value. The 2650.00 will need to be exceeded and the 2700.00 must prove it can be surpassed and sustained. In fact until ETH/USD climbs above 3000.00 and is able to maintain this higher ground, traders may remain suspicious of its results and simply look for reversals lower. However if ETH/USD does climb higher and attain the 3300.00 level, then bullish traders may be proven correct about a durable upwards trend developing.
