Key Points
- Ethereum’s market structure remains bullish despite recent retracement and negative Coinbase Premium.
- Long-term holders are not selling their Ethereum tokens, suggesting potential for future gains.
Despite a recent retracement from $4.1k, Ethereum (ETH) continues to display a bullish market structure.
Buyers were in control and winning at the time of writing, even though Ethereum witnessed a negative Coinbase Premium.
Understanding the Market Structure
The difficulties associated with an Ethereum ETF might be why U.S investors were less bullish on the asset in March.
However, a report highlighted that long-term ETH holders were not selling their tokens, pointing to a bullish outlook.
Ethereum’s 1-day chart showed a swing low at $3056 on March 20th.
Despite this deep retracement, the market structure remained bullish.
The RSI, which fell below 50, was at 54 at press time, indicating that the bulls were regaining control.
Buyers Remain in Control
The OBV did not test the mid-February resistance as support, suggesting that buying pressure was stronger in the long term.
The selling volume in March was significant, but not enough to overthrow the buyers.
The Fibonacci retracement levels indicated that $3160 was a critical support level, with prices bouncing from this level without closing the 1-day candle below it.
The $3580 resistance was on the verge of being breached, indicating that more gains were likely on the horizon.
The move to $3000 resulted in an estimated $8 billion in liquidation levels, but prices reversed and began to climb higher.
Future Outlook
The next areas of interest to watch are $3940 and $4150, which have a high number of liquidation levels around them.
Depending on sentiment around both Ethereum and Bitcoin (BTC), ETH could decide to collect this liquidity and reverse, or breakout.
It’s important to note that the information presented does not constitute financial, investment, trading, or other types of advice.
