Home Price Analysis Ethereum Price Range below $2k, Outflows from Exchanges Spikes, Propping ETH/USD Bulls

Ethereum Price Range below $2k, Outflows from Exchanges Spikes, Propping ETH/USD Bulls

The Ethereum price is underperforming Bitcoin but in range mode inside a $300 zone below $2k.

Technical candlestick arrangement suggests bulls and a possibility of another leg up, supportive of ETH/USD prices. However, how fast ETH prices will explode depends on many factors.

Scaling Efforts

One of them is the shift from Layer-1 to Layer-2 (off-chain solutions) that helps scale the base layer.

Thus far, developers are hard at work. The co-founder, Vitalik Buterin, spearheads efforts lest competing platforms like the Binance Smart Chain (BSC) take over.

The tech prodigy illustrated how bulletproof-style polynomial commitments work in a recent tweet, pointing out its relevance in Halo and future Ethereum upgrades.

This solution can be handy in scaling Ethereum, on-chain, without introducing vulnerabilities of which developers are cautious off in Layer-2 options like Optimistic Rollups—and its variants.

Outflows from Centralized Exchanges

On the other hand, on-chain statistics point to a massive outflow of ETH from centralized exchanges.

It could suggest improving investor confidence and possible influx to non-custodial wallets helpful in accessing DeFi protocols.

Analysts are optimistic that this may see ETH/USD prices improve in the days ahead. Accordingly, it could help build sufficient momentum for ETH bulls aiming to breach $2k and even propel prices towards $5k—or better, in line with permabulls’ predictions.

Besides DeFi, more Ethereum believers are locking their coins in Eth2 staking wallets. From this, they are earning decent near-risk free rewards while offering security for the parallel Ethereum blockchain.

Ethereum Price Analysis

Ethereum Price Daily Chart for Mar 17

The Ethereum price is ranging at near its all-time high, pointing to strength albeit immediate hints of weakness.

Although ETH traders are confident, the zone between $1.7k on the lower end and $2k on the upside define ETH/USD price action.

Presently, ETH prices could drop if bulls fail to drive prices above $2k. This is because ETH is still in range inside late Feb 2021 price action. Gains above $2k will nonetheless drive ETH prices to new all-time highs. The first target is $2.1k and later $2.3k, the 1.618 and 2.618 Fibonacci extension levels of the Dec 2020 and Jan 2021 trade range.

Meanwhile, a retracement below Mar 13 bull bar at around $1.68k and the middle BB may force ETH/USD prices back to Jan 2021 highs of around $1.5k in a retest.

Chart Courtesy of Trading View

Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.

If you found this article interesting, here you can find more Ethereum News

Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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