On the daily chart below, we can see that ETHUSD has been essentially moving for a month. The cryptocurrency is struggling to take off as hawkish Fed bets limit it given that liquidity and looser monetary conditions are key drivers for Ethereum. The rally since the Silicon Valley Bank collapse diverged with the MACD, which is usually a sign of waning momentum often followed by pullbacks or reversals.
The price has indeed returned to the 50% Fibonacci retracement level, but we could see it falling further towards the strongest zone at 1681. This will be the last line of defense for the buyers, as a break lower would increase the price. selling pressure and would make the buyers fold.
ETHUSD Technical Analysis
On the 4-hour chart below, we can see that Ethereum has bounced off the 50% Fibonacci retracement level and rallied back to the 1925 level. Price has now returned to the 1860 swing support, where we are likely to see buyers stepping in to attempt another push towards 2029 resistance and maintain the uptrend. Moving averages aren’t very useful in bound markets because they can give false signals, so it’s best to ignore them for now.
On the 1 hour chart below we can see that the price is just bouncing off the swing support level at 1860 where we also have the confluence with the 38.2% Fibonacci retracement level. This will be the area of support that sellers will have to break through to start targeting the 1681 level. Buyers, on the other hand, are likely to pile in here and target the 1928 high first and, in case of breakout, the resistance of 2029 next.