Analytics / Forex and Crypto News
After the ETH/USD pair broke the resistance level of 1850 and reached a high of 1863, it began a correction. The ETH/USD pair dropped below the level of 1800, but at the time of publication, it rallied to the area of 1820.
Ethereum's price has shown a decline following the price of Bitcoin, as Bitcoin and Ethereum have a close correlation.
The ETH/USD pair showed a correction amid a sharp rise in the US dollar index. The index was up about 3% by the end of March, the largest monthly gain in nearly 5 years.
The strengthening of the US dollar weakens investor interest in risky assets, in particular in cryptocurrencies. The $1,9 trillion stimulus package helped boost consumer confidence in the US. It looks like the dollar will continue to rise in the short term.
On the hourly chart, the ETH/USD pair is forming an uptrend with support around 1800. As shown in previous sessions, the area of 1850-1860 provides enough resistance for the ETH/USD pair. A break above the resistance area and a subsequent move above $1865 would open the way to the area of $1900.
If the ETH/USD pair fails to rise above the resistance area of 1850-1860, it could correct below. In this case, the initial support is in the area of 1820. The level of 1800 provides enough support to stop the price decline. If the bears manage to break down this level, we will see a decline to the area of 1750, where the 100-hour moving average is also located.