On the daily chart below, we can see that ETHUSD has been basically ranging for a month. The cryptocurrency is struggling to take off as hawkish Fed bets are placing a lid on it given that liquidity and looser monetary conditions are the main drivers of Ethereum. The rally since the Silicon Valley Bank collapse was diverging with the MACD which is generally a sign of weakening momentum often followed by pullbacks or reversals.
The price indeed pulled back to the 50% Fibonacci retracement level, but we may see it falling more towards the stronger zone at 1681. That will be the last line of defence for the buyers as a breakout lower would increase the selling pressure and make the buyers fold.
ETHUSD Technical Analysis
On the 4 hour chart below, we can see that Ethereum bounced from the 50% Fibonacci retracement level and rallied towards the 1925 level. The price has now pulled back to the 1860 swing support where we are likely to see buyers stepping in to try another push towards the 2029 resistance and keep the bullish trend going. The moving averages are not very helpful in rangebound markets as they can give false signals, so for now it’s better to ignore them.
On the 1 hour chart below, we can see that the price is bouncing right at the swing support level at 1860 where we have also the confluence with the 38.2% Fibonacci retracement level. This will be the support zone that the sellers will need to break to start targeting the 1681 level. The buyers, on the other hand, are likely to pile in here and target the 1928 high first and, upon a breakout, the 2029 resistance next.
