Ethereum: Why Bounces Are Still Selling Opportunities

by Justin Bennett  · 

March 10, 2023

by Justin Bennett  · 

March 10, 2023

by Justin Bennett  · 

March 10, 2023

On Tuesday, I wrote about how the Ethereum correction odds had increased following the break below the $1,600 critical level.

Not only is that a key level, but the March open is $1,605, making it even more significant.

ETH is down 8% since then and was down nearly 12% at Friday’s low.

Currently, Ethereum is battling with the $1,420 area, which is still serving as key support on a daily closing basis.

However, I expect more downside for ETHUSD toward the June 2021 trend line at $1,300.

That aligns with Bitcoin reaching my March target of $18,400, which I wrote about two days ago, as there’s still considerable liquidity to be taken below $19,000.

That’s approximately 8% lower for both BTC and ETH.

From there, it will be essential for Ethereum bulls to keep ETH above that trend line to avoid a more significant correction toward $1,000.

ETHUSD weekly time frame

But I’m not confident that Ethereum can avoid a $1,000 retest, given that the S&P 500 broke back below its all-time high trend line today.

That’s something I mentioned on Twitter earlier in the day.

The S&P 500 managed to hold above its March 2020 (COVID) channel support but closed below the all-time high trend line at 3,910.

For now, though, $1,420 is support as long as ETH can close today above it, and key resistance is $1,500.

I continue to favor shorting bounces for a move into the $1,300 to $1,340 support area.

Ethereum key daily levels
ETHUSD daily time frame

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