Ethereum (ETH) Enthusiasts Should Watch These Zones in The Coming Weeks

Santiment’s data indicated a dramatic surge in Ethereum transaction volumes within the past 48 hours. Furthermore, the ETH network saw address experiencing losses reaching a new all-time high, a bearish move for the alt. Do these massive losses imply an impending relief rally or more pain for market players?

News shows the ETH Merge will likely launch in the upcoming weeks, but will this optimistic news liberate Ether bulls?

Ethereum – 12Hr Chart

The value area at $1,800 – $1,950 served as a demand zone last June and July. The leading alternative token surged from the lows to form new all-time highs around $4,800. Is the crypto ready for such a fate?

Nothing is impossible in the crypto work. However, bulls need lots of actions for such a move to develop again. For now, inflation fears and slumping global stock markets ensure pessimistic effects on the cryptocurrency market.

Ethereum’s market structure seemed to shift bullish for some days in March. However, bearishness saw the token plummeting beneath $3,300 before declining to $3,000. This move showed ETH didn’t break the previous downside trend.

Ethereum will likely meet massive resistance zones at $2,280 and $2,500 in the coming weeks. Meanwhile, the demand zone beneath $2,000 might present positive reactions in the coming few days, triggering a potential rebound to $2,200.

Reasoning

The Relative Strength Indicator produced higher highs even with ETH prices forming lower lows. That meant a bullish divergence that might ensure a price bounce and a demand zone confluence. Nevertheless, the RSI’s 33 levels remained crucial in the past. The indicator should climb past this mark to resemble late January’s bounce. RSI escaping the oversold region to retest 33 would see the price climbing to $3,200 from $2,400.

Also, the Awesome Oscillator remained well beneath the zero line, suggesting a massive bearish momentum. Furthermore, the on-balance volume witnessed a colossal drop over the past couple of days, denoting sellers’ strength.

Final Thought

A divergence cannot be enough to trigger trend reversals. Moreover, Ethereum wasn’t prepared to print a bullish bias. Traders in the lower timeframe can access shorting chances, whereas investors should (patiently) wait for opportunities to purchase the token.

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