Daily Price Action

Ethereum to Break Out in March


The Ethereum chart suggests a March breakout, but directional cues are needed.

Get all the details and see exactly how I’m trading it in today’s video.

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The first time I mentioned Ethereum on this site in 2020, it traded at $243. That turned out to be the most profitable trade of my life.

However, ETH is down 45% since reaching an all-time high of $4,868 last November. At the January low, it was down by 55%.

Ethereum is now at an interesting juncture on the chart.

It’s caught between a descending trend line from the late November/early December high at $2,800 and an ascending level near $2,500.

At first glance, that lower trend line appears to begin in January, which would make it a very short-term level.

But zooming out to include the 2020 price action paints a very different picture for Ethereum.

ETHUSDT weekly time frame

Note how the trend line at $2,500 extends all the way back to the February 2020 high, right before the March (COVID-19) selloff.

It served as resistance between February and December 2020 before flipping to support this year.

The key now is waiting for the breakout from this symmetrical triangle. That means waiting for a close above $2,800 or below $2,500.

More on that below.

Need a broker to trade Ethereum? Blueberry Markets (affiliate link) offers crypto CFDs so you can easily long and short popular cryptos like ETH.

Another factor to consider is what’s happening with the ETHBTC chart. That’s Ethereum against Bitcoin.

ETHBTC weekly time frame

Notice how ETHBTC recently bounced from a confluence of support at 0.064. As long as this area holds, Ethereum stands a good chance of outperforming Bitcoin.

That said, the market needs to clear the upper trend line at 0.069 to confirm its bullish intent. Until then, this is all just consolidation.

On the flip side, if ETHBTC closes below 0.064, Bitcoin is likely to continue to outperform Ethereum, so ETH longs may not be ideal.

ETHUSDT is also experiencing consolidation. It has for most of 2022.

But a breakout from the triangle below in the coming days should be quite profitable. A close above $2,800 would open up $3,000 and potentially $3,600 in the coming weeks.

Alternatively, a close below $2,500 would re-expose $2,300 with a daily close below that opening up the mid-2021 lows at $1,700.

As always, none of the above is financial advice as it’s just my opinion.

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ETHUSDT daily time frame

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Justin Bennett says

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ALEX says

thanks for analysis sir justin

    Justin Bennett says

    You’re welcome. 🙂

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