The crypto market has recently entered a period of indecision, leaving many investors unsure of the future direction of major cryptocurrencies like Ethereum (ETH). Since March 17th, Ethereum’s price has fluctuated within a $150 range, displaying alternating red and green days.
This type of price action is generally considered unfavorable for investors, as it can make it difficult to predict the market’s next move. Despite this uncertainty, the September 2021 high of $1,790 seems to have lost its significance, as Tuesday’s session closed above this level, only for the price to retreat on Wednesday.
For Ethereum bulls, the primary goal this week is to maintain the market above the critical $1,680 level. The significance of this price point lies in its connection to a symmetrical triangle pattern that dates back to September 2021. A daily close below $1,680 would be seen as bearish, potentially triggering downside targets such as $1,560 and $1,500.
However, with Ethereum still hovering above $1,680 and a horizontal pivot just above $1,700, further upside cannot be dismissed. If the cryptocurrency maintains its position above these levels on higher time frames, there is a possibility of a run towards the $2,000 August high or, at the very least, a spike above this week’s highs.
Despite the market’s current indecisiveness, analysts are hesitant to predict a strong likelihood of an upward or downward trend. The key factor to monitor is Ethereum’s ability to stay above $1,680.
As a result, many investors are choosing to remain on the sidelines until a clearer picture of Ethereum’s trajectory emerges. With significant long liquidations accumulating for both Bitcoin (BTC) and Ethereum (ETH) below current levels, some investors are expressing more interest in shorting rather than going long on these assets.
Nonetheless, a more cautious approach would involve shorting Ethereum only if there is a higher time frame close below the pivotal $1,680 level. This would offer a stronger indication of a potential bearish turn in the market.