Ethereum (ETH) Price Could Revisit $1,800 Amid Weakening Momentum, Analyst Cautions

Key Takeaways

• ETH maintains position near $2,000 following rejection from $2,372 peak recorded earlier this month.
• Long/short ratio reaches 2.4, creating potential squeeze risk as price action remains stagnant.
• Ethereum ETFs listed in the U.S. experienced $92.5 million in withdrawals on March 26.
• Market volatility increased following $14.16 billion Bitcoin options expiration and heightened geopolitical concerns.
• Critical resistance zone positioned at $2,138–$2,151, while breach below $1,980 may trigger deeper corrections.

Ethereum currently changes hands around $2,048 as market participants attempt to defend the psychologically significant $2,000 threshold. Following a rally earlier this month, the cryptocurrency encountered strong resistance approaching $2,372. Subsequently, ETH has remained confined within a consolidation range spanning $1,900 to $2,200.

The asset trades beneath its 50-day exponential moving average positioned at approximately $2,160 and significantly under the 100-day EMA hovering near $2,420. This positioning reinforces a prevailing bearish technical structure.

Daily chart analysis reveals the RSI hovering around 44, registering below the neutral threshold of 50. Meanwhile, the MACD indicator remains beneath its signal line while drifting toward the zero mark. These technical signals collectively suggest diminishing bullish momentum.

Market observers are paying particular attention to the long/short ratio, which has escalated to approximately 2.4. This metric indicates that traders are predominantly positioning for upward movement. However, price action has failed to confirm this sentiment.

An accumulation of long positions without corresponding price appreciation often generates what market participants refer to as a “crowded trade.” Such conditions frequently precipitate a long squeeze scenario, wherein abrupt downward movement compels leveraged long holders to liquidate positions, amplifying downside momentum.

Institutional Withdrawals and Broader Market Dynamics

Data from March 26 shows U.S.-listed Ethereum ETFs registering $92.5 million in net withdrawals. These redemptions occurred within a broader pattern of outflows affecting cryptocurrency exchange-traded products.

The preceding day witnessed a historic $14.16 billion in Bitcoin options reaching expiration on March 27. Substantial options expiry events frequently introduce volatility into cryptocurrency markets, and this occurrence contributed additional selling momentum across digital assets.

Macroeconomic and geopolitical developments further influenced market sentiment. Escalating crude oil valuations, connected to Iran’s warnings regarding a critical shipping corridor, intensified inflation anxieties. Such conditions typically create headwinds for risk-oriented assets including Ethereum.

Critical Price Thresholds for Traders

Examining resistance levels, $2,138 represents the 23.6% Fibonacci retracement calculated from the $3,402 peak down to the $1,747 trough. The Ichimoku Kijun indicator establishes another barrier at $2,151, with market participants monitoring a decisive close above this region as a potential catalyst for advancement toward $2,380.

Regarding support zones, initial downside defense stands at $1,990. Beneath this threshold, the channel bottom resides near $1,748. A confirmed breakdown through this area could accelerate bearish momentum.

Technical projections suggest ETH will likely consolidate between $1,980 and $2,170 throughout the upcoming five-session period, with probability calculations indicating less than 20% likelihood of upward price movement.

Market analyst Ali Charts communicated via X that Ethereum confronts a “major test at $1,800,” indicating certain technical observers anticipate the possibility of substantially lower price levels should current support structures fail.

Separately, analyst Tom Lee has projected Ethereum could ultimately achieve $62,000, although this long-term forecast lacks a specific timeframe for realization.

With Ethereum ETF withdrawals reaching $92.5 million on March 26, ETH remains anchored near $2,000 while technical indicators continue signaling near-term vulnerability.

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Source: https://blockonomi.com/ethereum-eth-price-could-revisit-1800-amid-weakening-momentum-analyst-cautions/