Technical Analysis Points to $2,800 as Ethereum's Upcoming Price Objective
Technical patterns including a symmetrical triangle formation combined with significant supply concentration suggest Ether could climb toward $2,800 during March.
Market participants holding Ether (ETH) are anticipating a potential advance toward the $2,800 price level throughout March, supported by no fewer than three technical and on-chain indicators demonstrating upward momentum potential for ETH.
Key takeaways:
- Ether's price jumped by over 9% toward $2,280 on Monday.
- Multiple indicators, including a symmetrical triangle, hint at an extended price rally toward $2,800.
Ether nullifies a downward chart formation
During Sunday's trading session, the price movement of Ether negated what had initially been identified as a bearish pennant pattern on its daily timeframe chart.
The ETH/USD trading pair broke above the pennant's resistance trend line positioned at $2,100, surging 9.8% to reach a six-week peak of $2,287 during Monday's session. The upward breakthrough occurred in conjunction with elevated trading volume, suggesting increased market conviction supporting the upward movement.
The cryptocurrency also successfully recovered two critical support levels represented by the 20-day exponential moving average (EMA, red line) and the 50-day EMA (yellow line) positioned at $2,072 and $2,210, in that order.
This development concurrently elevated the probability of a bullish reversal pattern taking the form of a symmetrical triangle.
The formation of a symmetrical triangle occurs when an asset establishes descending peaks alongside ascending troughs, creating a narrowing price channel. Resolution happens when the price penetrates one of the pattern's boundary lines and typically advances by a distance equivalent to the triangle's widest point.
When applied to Ether's situation, the calculated target price following the breakthrough of the triangle's upper boundary indicates approximately $2,850, representing a 26% gain from present price levels. This target coincides with the 200-day EMA (depicted by the purple line), as illustrated in the accompanying chart.
The next significant resistance level confronting Ether is located at the 100-day EMA (blue) positioned near $2,500.
According to previous analysis from Cointelegraph, a price rejection at that level would undermine the breakout scenario and increase the likelihood of a downward correction.
Blockchain metrics suggest $2,800 ceiling for Ether
ETH has been trading within a broad corridor bounded by the realized price level at $2,350 representing the upper boundary and the lowest MVRV band at $1,650 serving as the lower boundary.
The visualization below demonstrates that the latest recovery from the lowest MVRV band closely resembles the price behavior witnessed during Q2 2022, when the asset rallied beyond the realized price level before encountering resistance at the initial MVRV band positioned slightly higher.
This parallel strengthens the forecast that the ongoing rally could encounter resistance approximately around $2,650, the location where the initial MVRV band is positioned above the realized price level.
The Entity-Adjusted UTXO Realized Price Distribution (URPD) from Glassnode, which displays the price levels at which existing ETH UTXOs originated, has additionally identified a concentrated supply region between $2,770-$2,880 that has been progressively transitioning into long-term holder status. Within this range, market participants accumulated in excess of 7.9 million ETH.
This outstanding supply concentration continues to represent a consistent source of selling pressure, expected to limit upward price attempts in the vicinity of the $2,800 threshold.
In the meantime, the cost-basis distribution heatmap for ETH reveals substantial accumulation activity around $2,800, a price point where in excess of 3 million ETH were acquired previously, indicating a plausible trajectory toward this price level in the near term.
Prediction market probability for $2,800 ETH in March increases
Polymarket, a cryptocurrency-powered prediction platform where participants trade derivative contracts on real-world events, is demonstrating a notable bullish transition for Ether throughout March.
Market participants currently attribute 13% probability that ETH will achieve $2,800 during March, representing a 10% jump within the past 24 hours. The price targets of $2,600 and $2,400 command substantially greater confidence levels at 32% and 69%, in that order.
Simultaneously, the probability assessments for the ETH price declining to $1,800 and $1,600 throughout March have been valued lower compared to previous estimates, indicating that market participants are reducing their bearish expectations.