Key Points
- Ethereum’s bullish structure broke on lower timeframes, causing a significant pullback.
- Two significant support zones have been identified through a liquidation levels heatmap.
After a steady rise over the past month, Ethereum [ETH] experienced a considerable pullback. The cryptocurrency almost reached the $4.1k mark before the bullish trend reversed. However, investors should not be overly concerned about this temporary drop in prices.
Bitcoin [BTC] also stumbled above the $73k mark, leading to a market-wide downturn. Although a continued rally is expected in the long run, short-term losses are predicted.
Bullish Bias Remains Despite Bearish Signs
The 12-hour chart still indicates a bullish bias based on price action. However, on lower timeframes such as the 4-hour chart, the structure has turned bearish. The 12-hour RSI also fell below the neutral 50 mark, suggesting an increase in bearish momentum.
The recent pullback is not a result of overleveraged bulls being flushed out as was the case on March 5th. The rally lost momentum after the 12th of the month, followed by an increase in selling pressure.
Potential Support Zones Identified
The OBV began to drop, supporting this idea. The Fibonacci retracement levels highlighted the 61.8%-78.6% region at $3100-$3315 as a probable retest for support. The $3463 level could also potentially halt the bearish trend.
Analysis of the liquidation levels heatmap suggests that ETH could experience further losses. The $3560 level could trigger $2.6 billion worth of liquidations. These large liquidation levels are concentrated in the $3520-$3560 region, marking it as a support zone. Ethereum could see a bullish reaction from here.
Below the $3520 level, the next large liquidation levels are at $3300 and $3130. The former could result in $2.2 billion in liquidations, and the latter could have $5.4 billion. This aligns with the 78.6% retracement level at $3102.
Note: The above information does not constitute financial, investment, trading, or other types of advice. It is solely an analysis of market trends.
