Ethereum News: Price Consolidates Below Key Resistance Levels, Future Movement Uncertain

Ethereum Price Retreats—Will It Find Support or Drop Further?

Ethereum price failed to clear the $2,320 resistance and trimmed gains. It is now consolidating and facing hurdles NEAR the $2,220 resistance. ETH started a fresh upward move above the $2,120 support zone but is currently trading below $2,220 and the 100-hourly Simple Moving Average. There was a break below a key rising channel with support at $2,220 on the hourly chart. The pair must clear the $2,220 and $2,320 resistance levels to start a decent increase.

Ethereum May Be Undervalued, Indicates Potential 160% Rally

According to a key on-chain indicator, Ethereum (ETH) may be undervalued at its current market price. The MVRV-Z score, which determines whether an asset is overvalued or undervalued, is currently at its lowest level in 17 months. This suggests that ETH may be approaching a local bottom. Notably, the last time this metric was at a similar level in October 2023, ETH surged by 160%.

Ethereum’s Latest Drop: Key Holder Activities

In crypto, wild price swings are normal when policies and new regulations are announced. This week, after US President Donald Trump announced plans for a strategic crypto reserve including Ethereum, Solana, ADA, Ripple’s XRP, and Bitcoin, Ethereum surged and fell massively within days. ETH was trading at $2,191 on March 2nd, climbed to $2,542 on March 3rd, then dropped below $2,300 and settled at $2,050 the next day. Glassnode data reveals key strategies of ETH holders during these movements.

Ethereum Market Sentiment Plunges Amid Weak Price Performance

Ethereum’s market sentiment has witnessed a significant decline, triggered by the altcoin’s weak price action. Crypto enthusiasts are demonstrating heightened uncertainty toward ETH, with bearish comments emerging rapidly within the community. Santiment reported that crowd sentiment toward ETH dropped to year-low levels.