Altcoin leader Ethereum (ETH) looks poised for a price increase at the beginning of April, according to investors. However, it is important to note that market makers or smart money may tend to collect liquidity in the opposite direction first, so this is not always the case. Therefore, it is important for ETH bulls to be patient to achieve results. So, what can be said about the direction of Ethereum’s price at this point?
Ethereum’s Price May Trap Impatient Investors
Cryptocurrency markets offer exciting opportunities for investors but also contain dangerous traps. The recent volatility in Ethereum’s price has caught the attention of many investors. However, it is beneficial to be cautious before getting lost in this variability.
The 25% drop in Ethereum’s price between March 11-20 created a wide range from $3,054 to $4,095. Currently, ETH is experiencing a rapid rise above the midpoint of this range. However, there are concerns about whether this rise will be permanent.
Initial Surges and Corrections
In cryptocurrency markets, initial surges are often followed by quick corrections. This is a strategy to collect liquidity and can pose a danger to investors. Since March 20, Ethereum, the king of altcoins, has been creating higher peaks, indicating a correction might be likely.
Therefore, a short-term rise should be expected if there is a breakout above $3,574 and $3,658. However, this rise is not likely to be permanent, and a correction could soon occur.
Bitcoin Price Direction Is Crucial for Cryptocurrency
If the cryptocurrency Bitcoin completes its short-term liquidity flow, a scan at $3,461 could be an attractive point for those looking to take long positions in Ethereum. In this scenario, it is likely that the cryptocurrency Ethereum will rise further and test the $4,000 psychological level.
However, if the Bitcoin price fails to recover, altcoins could be negatively affected. In this case, Ethereum’s price could move within a lower range, and the $3,054 level could become resistance. Accordingly, this could indicate the continuation of a downtrend. It remains to be seen whether Ethereum can reclaim the $4,000 level in April.
