Two converging trendlines in the daily chart drive the ongoing consolidation trend in the ETH price. A shared market chart highlights that nearly 38% of altcoins are trading near their historical lows. The relative strength index (RSI) is down to 52% suggests a neutral to bullish market sentiment. On Tuesday, March 24th, the $ETH price projected a low volatility trading around the $2,150 mark, resulting in the formation of a neutral candle.
The cryptocurrency market started the week with BTC above $70,000 and ETH reclaiming $2,000. A primary catalyst for the surge was the de-escalation of the Middle East crises as President Donald Trump announced a progressive talk with Iran and a 5-day pause on any military action on Iran’s power infrastructure. However, Iran has officially denied holding direct negotiations with the United States, reigniting the geopolitical tension among market participants. While the uncertainty surrounding the U.S.-Iran-Israel war continues to limit the growth potential of risky assets, the altcoin market presents an opportunity for reversal.
Over the past week, the ETH price has plunged from $2,386 to $2,150, a loss of roughly 10%. The pullback signals a bearish reversal within the ongoing consolidation trend, coinciding with the broader market uncertainty. However, a deeper analysis of the technical chart shows that a long-coming resistance trendline and an emerging support trendline have created new range boundaries for Ether, and ETH has rebounded from these lines at least twice. A breakout above roughly $2,355 would intensify buying pressure toward $3,000, while a break below the lower trendline could extend the downtrend.
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