- Summary:
- Ethereum price has returned above $1,900 but multple factors in the market signal a potential difficulty at the psychological $2,000 mark.
Ethereum price edged up on Monday, continuing with its struggle to return to the psychological $2,000 mark. The ETHUSD pair was up by 1.1% and traded at $1,908 at the time of writing. The crypto coin has had a rough run in March, and has recorded eight successive net outflow sessions at the spot ETF market.
The crypto market is on an extended decline, with the market capitalisation having declined by more than $400 billion since the beginning of March. The decline is not a reflection of a lack of attractiveness by digital assets, but a risk aversion triggered by a widespread global trade tariff war. However, the last 24 hours has seen the market cap jump by 1.1%, pointing to a potential onset of a recovery.
Elsewhere, 21Shares has announced plans to liquidate ARKC and ARKY, two of its products that track ETH and BTC futures prices. This underlines declining confidence in ETH price recovery in the near-term and could add downward pressure on the asset.
However, some institutional investors are buying the deep, and could help limit the downside. For instance, Donald Trump-backed World Liberty Financial bought $540k worth of ETH over the weekend. Meanwhile, Ethereum’s Open Interest value rose by 2.5% in the last 24 hours to over $9 billion, affirming a likely continuation of the upside.
Ethereum Price Prediction
Ethereum price is currently above the $1,870 pivot mark and the upward momentum will likely continue if it hangs on above that level. ETH will likely attempt encounter the first resistance at $1,945. However, an extended control by the buyers could break above that level and potentially see it reclaim $2,000.
Conversely, the momentum will shift to the downside if ETH breaks below $1,870. With the sellers in control, ETH is likely to move lower and find initial support at $1,812. The upside narrative will be invalid if the price action goes below that mark. That could clear the path for ETH price to go lower and test $1,762.
