Ethereum Price Breaks $3K, But Analysts Warn New Test Is Needed

The cryptocurrency market continues to make headway on March 23 despite headwinds on multiple fronts. Right now, global conflict, rising inflation and widespread economic uncertainty are taking their toll on financial markets, helping to highlight the need for a diversified investment portfolio.

Altcoins have managed to gain some ground in recent days, led by the top smart contract platform Ethereum, which managed to climb back into the main support and resistance zone at $3,000, where bulls are now vying for control.

ETH/USDT 1-day chart. Source: TradingView

Here’s a look at what various analysts in the market are saying about the path forward for Ether and whether more gains are expected in the near term.

Upcoming Test of $3,125

A general overview of the recent price action was provided by crypto analyst Michaël van de Poppe, who: Posted the following chart shows that “Ethereum is moving up after holding a crucial level.”

ETH/USD 2 hour chart. Source: Twitter

van de Poppe said:

“Looks like we’re going to test the next $3,125.”

But not all traders were so quick to look for a higher price target, including the pseudonymous Twitter user “Chartpunk”, who Posted the following chart shows the 10-day uptrend for Ethereum and warned of jumping into an overheated market.

ETH/USD 4 hour chart. Source: Twitter

chartpunk said,

“Not FOMO in the market. If you want to join the trend, look for the entry zone retest on this chart.

Based on the area marked on the chart, Charpunk is looking for a return of about $2,975.

Sentiment is neutral to $3,287

A more measured approach to the current price action was offered by crypto trader and pseudonymous Twitter user ‘Mad Max Crypto’, who posted the following chart indicating a “neutral bias to the $3,287 mark”.

ETH/USDT 1-day chart. Source: Twitter

This outlook was shared in large part by cryptocurrency advisor and pseudonymous Twitter user ‘Altcoin Sherpa’, who Posted the following chart shows the series of higher lows and higher highs created by Ether.

ETH/USD 1-day chart. Source: Twitter

Altcoin Sherpa said:

“I think you can make an argument to break the market structure up on lower timeframe charts, but I personally wait for the higher levels. Anyway, the ETH2.0 fundamentals will be strong soon. †

Related: ETH Price Hits $3K As Major Crypto Fund Adds Over $110 Million Ethereum To Lido’s Betting Pool

A possible drop to $2,600

One final bit of analysis on lower price levels to watch was pointed out by crypto trader and pseudonymous Twitter user “Follis,” who Posted the following chart suggests the possibility of a pullback to $2,600.

ETH/USDT 8 hour chart. Source: Twitter

follis said,

“Strong response from that supply attack, but most hourly timeframes are bullish, and I expect more upside as long as we don’t close below USD 2,800. $2,600 area is interesting if we get a pullback, the 0.79 fib has worked well within this macro range.

The total cryptocurrency market cap now stands at $1,919 trillion and Bitcoin’s dominance is 41.7%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risks, you should do your own research when making a decision.

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