Thursday was a bearish day for Ethereum (ETH/USD). Ether briefly reached the $3,000 level with a intraday high of $3,032 before pulling back, to test the support of the 200 EMA at 2,897.
FED monetary policy was in focus on Wednesday, with FED Chair Powell delivering testimony on Capitol Hill. Specualtions about a more cautious move later this month spurred demand for riskier assets. However, investors' optimism was quickly dissolved on Thursday, when ETH failed to consolidate above the psychological level of 3,000.
As geopolitical events unfold regarding the Russian-Ukrainian war, Bitcoin and Ether are likely to remain under bearish pressure. If investor fear rises, they are likely to turn away from risky assets and take refuge in gold. Risk aversion could cause Ether to drop towards the level 2,151.
When demand for safe-haven assets like the US dollar or gold boosted, cryptocurrencies came under pressure. This scenario could be repeated in the coming days until the market turbulence ebbs away.
Ether is currently trading below the 21 SMA below the 200 EMA, both located at 2,897.
We can also observe the formation of an ascending wedge pattern. Because this pattern was broken, ETH is likely to remains trading below the psychological level of $3,000. So, Ether could continue its downtrend and could reach the level 0/8 Murray at 2,500 in the next few hours and fall sharply to strong support of -1/8 Murray located at 2,187.
On the other hand, a pullback towards the 200 EMA located at 2,897 and as long as it remains consolidated below this level will be an opportunity to sell with targets at 2,500 and 2,187.
Support and Resistance Levels for March 04- 07, 2022
Resistance (3) 3,062
Resistance (2) 2,932
Resistance (1) 2,812
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Support (1) 2,653
Support (2) 2,524
Support (3) 2,308
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Scenario
Timeframe H4
Recommendation: sell below
Entry Point 2,731 or 2,897
Take Profit 2,500; 2,187
Stop Loss 3,000
Murray Levels 3,437(3/8), 3,125(2/8) 2,812(1/8), 2,500(0/8)
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