The value of the second crypto by market capitalization is currently hovering around $1800. Investors are expecting volatility on this crypto as the Shanghai Update is fast approaching. Ether (ETH) could correct to $1600 before exploding higher.
Ether (ETH) crosses a critical hurdle
ETH crypto closes March up 14%. This gain is weaker than its performance in January. However, this allowed him to clear a critical hurdle and close in on $2000. This is an oblique resistance that has formed from its all-time high at $4867. The breakout of this hurdle could mean a major trend change for Ether (ETH). In this case, the underlying trend will turn bullish and ETH could rise well above $2000. Especially since the Shanghai update should have a positive impact on its price. But before that, we could expect a correction towards $1600 on ether (ETH).
Indeed, the second crypto by capitalization could look for a new DIP before embarking on a new bull run. In this case, we could envisage a correction towards $1600. This level aligns with the half of the March range. It could therefore serve as a support for the price of ether (ETH). The presence of an RSI divergence on the daily scale indeed shows that the bulls are losing strength. This leads us to believe that a correction seems to be approaching.
A sell position?
If the bearish thesis towards $1600 is confirmed, a sell position seems the most appropriate. Nevertheless, ether (ETH) might create a new high before descending to this support. Indeed, we see the presence of short-term support on the h2 chart. This crypto could then take buy orders below this support to create a new high above $1860. In this case, it will be necessary to wait for the price to reach this peak before taking a short position.
Moreover, the price will still tend to reach the high of the week on Tuesday. Thus, it could be that ETH rises to $1860 before falling to $1600.
Admission: $1870;
Stop: $1930;
Goal: $1600.
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