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Ethereum Price Analysis: ETH Drops Below $1,900

4 Min Read
Last Updated March 27th 2021

Daily Ethereum ETH Price Forecast

  • Ethereum price shows increasing bearish momentum.
  • ETH has flipped the 20-bar and 50-bar SMAs from support to resistance.

After crossing the $2,000 mark this Saturday, the Ethereum price has been steadily downward. As of now, ETH has broken below the $1,900 psychological level. Let’s take a closer look with technical analysis.

 

Ethereum Price Crumbles Under Increasing Bearish Momentum

The Ethereum price lost all momentum at the 20-bar SMA, and has since dropped to $1,865, flipping the 50-bar SMA from support to resistance. The parabolic SAR shows that the current market sentiment is negative. Plus, the MACD shows increasing bearish market momentum.

eth/usd daily chart 022221

As of now, the Ethereum price is sitting on top of a healthy support at $1,800. Previously, at this level, 491,000 addresses had purchased 2.34 million ETH tokens. On the upside, strong resistance liest at the 50-bar SMA ($1,875).

eth/usd volume chart 022221

Image: IntoTheBlock

 

Nearly 15% Of Ethereum’s Circulating Supply has Been Dormant for 2 – 3 Yrs

The amount of Ether (ETH) that has been dormant for the last two to three years has just hit a nine-month high of 16,884,718 ETH, according to Glassnode. 

eth/usd glassnode chart 022221

Image: Glassnode

This amount of dormant Ether roughly amounts to 14.7% of the total circulating supply of 114.759 million ETH. Furthermore, the dormant Ethereum is valued at $32.553 Billion using ETH’s current value. 

Such a significant amount of Ether not having moved for such a long time indicates that ETH investors are particularly bullish about the digital asset's long-term future and the corresponding blockchain network. 

Both Ether and Bitcoin recently hit new all-time highs before experiencing a pullback. According to reports, there are a few reasons why Ethereum will keep thriving. One of these reasons includes Grayscale’s continuing Ether accumulation. Another reason for the asset’s rally is that the volume and interest of the CME Ethereum futures have continued to grow since their launch earlier this month. 

 

TVL In Ethereum 2.0’s Deposit Contract Reaches ATH

2021 has been a very eventful year for Ether (ETH) so far, with the asset reaching new all-time high prices. In addition to prices, Ethereum has also managed to register a new ATH with regard to the total value in the ETH 2.0 Deposit Contract. 

ETH 2.0 has crossed three million ETH under its deposit contract, with its total value locked coming close to $6 billion on the charts. 

eth/usd glassnode chart 022221

Image: Glassnode

This is a significant development for the world’s largest altcoin. ETH’s deposit contract was launched in November and secured the required amount of ETH to lock in the Beacon Chain’s launch in December. 

Currently, the Beacon Chain is a bridge network between the present Ethereum network and Ethereum 2.0. Alongside these developments, the price of Ether has also been noting significant investor confidence. 

ETH’s price has risen by a whopping 174% in less than two months and two key factors seem to be backing the asset’s rally at the moment – investor confidence and good network health. Currently, Ethereum’s long-term prospects seem to be extremely positive as well. A recent report by Coinshares highlighted why Ethereum continues to be an investor favourite and how it has been able to secure record investment inflows. The report said: 

Ethereum was the standout performer with a record US$216m of investment product inflows, beating the previous week record of US$195m. Ethereum inflows represented 36% of the digital asset inflows last week, far greater than the share of assets under management at 16%. This highlights how investors are, at least on a relative basis, favouring Ethereum. 

 

Ethereum Price Is Expected To Reach These Levels

We expect Ethereum price to drop to the $1,800 psychological level at the very least. The future price action will depend solely on the way the buyers and sellers act around this psychological level.

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