Ethereum appears to be edging closer to a 15% correction.
It’s been a relatively slow start to March for crypto, primarily since the March 3rd selloff, with Bitcoin confined to a mere $600 range.
However, that may be about to change.
ETHUSD is coming off a significant trend line resistance at $1,720, extending from the September 2021 low.
And while the market remains sideways, the chart below hints at a potentially significant pullback ahead.
And it isn’t just the Ethereum chart that has me thinking a risk-off move could be ahead.
Earlier today, I wrote about a possible EURUSD head and shoulders pattern.
We’re also seeing the S&P 500 trade back below 4,020 after closing last Friday above it.
And believe it or not, markets such as the euro and S&P affect cryptocurrencies like ETH.
The March open for Ethereum is $1,605. I mentioned this in the recent crypto forecast video.
That’s the key for ETH going forward.
The market is vulnerable as long as ETHUSD trades below that mark on the higher time frames.
Only a reclaim of $1,605 and the longer-term trend line at $1,680 would turn Ethereum higher.
And as for downside triggers, $1,500 is the support level to watch.
It’s been range support for ETH since January 18th, so a daily close below it would open up lower levels, such as $1,420 and $1,350.
That said, Ethereum is susceptible to bounces while above that $1,500 range support.
But given what I see elsewhere combined with the ETH chart above, a correction later this month seems the most likely outcome.
