What to know:
- ETH stays range-bound below $2,400 as repeated rejections limit upside momentum.
- Volume drops sharply while indicators show weak participation and market indecision.
- Key support near $2,050 holds as analysts watch breakout or downside continuation.
Ethereum (ETH) remains range-bound as repeated rejections near key resistance levels limit upside momentum. Analysts highlight weak participation and fading volume as major concerns, while price continues to hover below critical breakout zones without a clear directional move.
As of writing, on Wednesday, March 25, ETH is trading at $2,172.75, marking a 1.69% increase in a day. The trading volume is down by 34.48% and is currently standing at $18.39 billion. Over the last week, the ETH coin price has decreased by 6.48%, according to CoinMarketCap.
ETH Struggles Below Resistance Amid Fading Volume
Crypto analyst CyrilXBT highlighted that ETH still trades below the resistance zone around $2,400. This resistance zone has been rejected several times. However, the volume has been declining significantly since the spike in February.
He added that there is a lack of conviction from both sides. The 200 EMA around $2,787 is still a long way away from the current price action. This is a gap between short-term activity and broader trend levels.
CyrilXBT identified the macro trendline around $1,800 as an important level to watch. He described it as the last major floor if the selling pressure continues.
ETH Upside Depends on Breakout
Moreover, another analyst, Gabz, mentioned a resistance range at $2,190. He said that ETH has been testing this area several times but has yet to break out. The coin needs to break and hold the 50-day EMA at $2,196 to go higher.
Gabz said that a confirmed move above this level will take ETH up to $2,340 and $2,390. He said that breaking through this point could potentially push the coin up to $2,786, which is the 200-day EMA.
Also Read: Ethereum Signals 587% Rally After Positive Key Buy Zone
On the downside, support levels are established at $2,050 and $1,990. Additional support is also observed at the Supertrend line at $1,978. An ascending trendline is also identified at $1,950.
The Money Flow Index is flattening, which indicates a lack of momentum. The volume is also neutral, which suggests a lack of buying or selling pressure. This setup suggests a potential move toward either support or resistance.
Open Interest Rises as Volume Declines
According to CoinGlass data, the future volume fell by 32.08% to $51.86 billion. On the other hand, the open interest rose by 7.56% to $30.79 billion. The OI-weighted funding rate is at -0.0021%, which suggests a bearish sentiment among traders.
Also Read: Zcash (ZEC) Breaks Key Resistance as Selling Pressure Shows Signs of Easing
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