The second half of March was bullish for markets, particularly Ethereum with only two daily red candles. ETH started the rally when breaking above $2500 and then surged by 25%.

Crossing the psychological resistance at $3,000 was an outstanding achievement for the bulls, marking a decent recovery of about 50% of the downtrend since reaching the all-time high. What’s next?

The Daily Chart

Technical Analysis by Grizzly

ETH is struggling at a descending axis (marked with blue on the daily chart) after crossing the $3K mark. The line was very active, interacting with the price over the past 300 days.

This resistance intersects with the horizontal resistance at $3300, and crossing this area alongside the formation of a higher high can technically be considered as the end of the downtrend in the short term.

Over the last week, RSI 30 days has crossed the baseline and has entered the bullish area. Like the price, it is struggling with the descending trendline (marked by red), which was tested once on March 24 and is currently being retested (yellow circle).

If the price can cross above $3300, the next resistances are at $3600 and $4100. otherwise, if the bears can defend this area, the supports at $3000 and $2800 are the first areas where the price is likely to find solid support.

Moving average exponential levels

EMA20: $2790


EMA50: $2830


EMA100: $3061


EMA200: $3488

The 4-Hour Chart

ETH is forming an Adam-Eve pattern (marked with yellow) in the 4-hour period, which is classic bullish.

The baseline of this pattern is at the horizontal resistance at $3300, which is mentioned in the above analysis. The OBV indicator is below the descending line (marked by red), and crossing above it will probably coincide with the price breaching above the resistance at $3300.

Targets above $4,000 will become reasonable in case Adam and Eve pattern is completed.

On-Chain: Spent Output Profit Ratio – 30 Days MA

The Spent Output Profit Ratio is calculated by taking the realized value (in USD), and dividing it by the value at creation(USD) of a wasted output. Simply put, price sold divided price paid.

Market participants move/spend their coins in profit when this metric is higher than 1. The chart shows that when this indicator crosses the baseline (or 1,) the price is capable of reaching higher levels, which indicates a low risk purchase.

This has not happened yet, and one can probably expect this breaking to take place with the price crossing the resistance at $3300.