Bitcoin and Ether are down more than 2% over the past 24 hours as the crypto market relinquishes the gains posted earlier this week. Ether, the leading altcoin by market cap, is trading around $2,040 after failing to clear the $2,197 resistance, keeping the $2,000 psychological level in focus.
Nevertheless, Ether posted roughly a 7% gain in March, ending a six-month losing streak, a move that data points and market observers viewed as a sign of renewed demand despite a risk-off backdrop driven by geopolitical developments. The report said that March’s performance occurred even as tensions in the Middle East and broader regional headlines weighed on financial markets.
What drove the move
The March pullback and ongoing volatility in Ether follow a mix of macro and geopolitical drivers. The report said that geopolitical tensions in the Middle East, including developments related to the U.S.-Iran situation, contributed to risk-off sentiment that pressured crypto assets, even as on-chain activity showed pockets of accumulation. Ether’s inability to push above the $2,197 resistance level served as a near-term technical obstacle, contributing to the recent softness in prices.
On-chain data highlighted sustained demand among holders, with addresses that have not sold their Ether positions purchasing about 2.7 million ETH in March—the largest monthly total in more than a year, according to the report. This pattern suggests a defensive cash-stacking behavior among long-hold investors even as price action remained volatile.
Corporate demand also featured prominently. BitMine Immersion Technologies, a prominent Ethereum treasury, was cited as one of the biggest buyers last month. The firm holds about 4.73 million ETH, of which roughly 3.14 million are staked, and has signaled plans to add to its holdings in the coming weeks. BitMine’s chairman, Thomas Lee, told the report he would continue buying at current price levels, arguing that the sell-off had run its course. Lee had previously forecast that Ether would rally and bottom during March.
Market reaction
From a trading-structure perspective, Ether’s near-term setup remains mixed. The four-hour chart has shown a bullish tilt as the asset consolidates, with the 20-day exponential moving average near $2,085 acting as a near-term reference point. The 50-day EMA around $2,160 forms the ceiling for near-term gains, while the longer-term overhead remains the 100-day EMA near $2,400, which poses a more substantial challenge to sustained upside.
The technical read is complemented by a momentum backdrop where the relative strength index sits at 57, suggesting a bias toward buyers but without overextension, and the MACD line has rebounded from oversold territory to signal improving upside momentum.
If buyers press through the $2,200 resistance, the next technical hurdle sits near $2,388, followed by the 100-day EMA near $2,400. A daily close above that level could open the way toward $2,746 and then $3,412, the analysis said. On the downside, a renewed sell-off could drive Ether toward the $1,911 support level, with next floors at $1,741, then $1,524 and $1,405 as a broader set of supports.
Ethereum price forecast
The near-term view remains mildly bullish despite the recent pullback, with the price hovering below key moving averages but supported by improving momentum signals. The report noted that the market would likely need to clear resistance around $2,200 to extend gains toward higher targets, while a breakdown below roughly $1,911 would raise the risk of a more pronounced retreat toward the mid-$1,000s range.
Overall, investors are weighing the potential for a short-term bounce against a broader backdrop of geopolitical uncertainty and varying risk sentiment across asset classes. The combination of on-chain accumulation, corporate treasury activity, and technical readouts provides a nuanced picture of Ether’s path in the near term.
Looking ahead, market participants will monitor macro developments and headlines surrounding the Middle East tensions, along with general risk appetite signals from the broader financial system. Key data releases and central-bank commentary in the coming weeks could influence Ether’s short-term trajectory and the broader crypto market’s direction.
