Ethereum's price is struggling at the $1,900 support level while Bitcoin continues to rise. Traders are watching whether a rebound or a fall to $1,500 will occur.
Current Market Situation
Ethereum is facing challenges. In contrast, Bitcoin has surged above $85,000, increasing by 3.8% over the past two weeks. As of March 16, Ethereum traded at $1,932. CryptoQuant analyst SunflowrQuant notes that the ETH/BTC ratio has fallen to 0.02, and open interest in Ethereum futures has decreased to 0.15, indicating that traders are shifting their focus to Bitcoin.
Technical Analysis and Forecasts
Ethereum's price is at a critical level, which could set the stage for a rebound or a deeper decline. The price action is trapped within a descending channel, and each attempt to break higher meets with resistance. The 50-day and 200-day exponential moving averages (EMA), at $2,475 and $2,880 respectively, are significant hurdles for any recovery. The relative strength index (RSI) is at 35.51, approaching oversold conditions, which could lead to a short-term bounce.
Analyst and Trader Opinions
Not everyone is bearish. Trader Ted Pillows has pointed out that large holders, known as whales, are quietly accumulating ETH despite its sluggish performance. Nevertheless, overall sentiment remains cautious. Open interest in Ethereum futures is declining, and without fresh buying pressure, Ethereum could struggle to find direction.
Ethereum's future is contingent on whether buyers step in or selling pressure drags prices lower. CryptoQuant analyst SunflowrQuant mentioned that fear often triggers strong rebounds, but there are no guarantees. Recovery will require more than sentiment, including institutional demand, network upgrades, and Bitcoin's price action.
