Ethereum price initially dipped on the headlines regarding regulatory scrutiny before recovering to trade more than 3% on the day.
Elsewhere, Insights from derivatives markets signaled a decrease in open interest on ETH/USDT contracts and a reduction in the funding rate, suggesting possible capitulation by buyers.
However, caution is advised as Ethereum approaches strong liquidation areas between $3,000 and $2,800, as well as around $4,100.
Recent developments include Glassnode suggesting Bitcoin‘s correction offers buying opportunities ahead of the April halving, and MicroStrategy strengthening its crypto reserves with a significant BTC acquisition.
Technical analysis on the H4 chart revealed Ethereum’s price drop from $4,100 to $3,050 and finding stability around the Fibonacci 50% level, hinting at potential buying opportunities.
Ethereum price is currently hovering just above its 50-day moving average, maintaining a bullish structure, albeit with some revisions in its bullish momentum.
Yet, worries persist about the surge in meme tokens, reminiscent of the ICO frenzy of 2018, as noted by CryptoQuant’s founder. Despite institutional support, vigilance and risk management remain crucial to navigate the evolving cryptocurrency terrain.
The crypto market anticipates stabilization following a corrective phase, with Ethereum’s performance closely tied to Bitcoin’s dynamics amid impending major central bank meetings later in the week.
Ethereum price is trading at $3187.5 as of writing.
Source: Cryptocurrency - investing.com
