© Reuters
The price has made fresh gains today, showing resilience amid a volatile crypto market. The gains are holding up even though the Securities and Exchange Commission (SEC) has stepped up its legal efforts to classify Ethereum as a security, which could impact its regulatory status and ETF approvals.
Ethereum price initially fell on headlines related to regulatory scrutiny before recovering to trade more than 3% on the day.
On the other hand, derivatives market sentiments pointed to a decline in open interest in ETH/USDT contracts and a reduction in the funding rate, suggesting possible capitulation by buyers.
However, caution is advised as Ethereum approaches strong liquidation zones between $3,000 and $2,800, as well as around $4,100.
Recent developments include Glassnode suggesting the correction offers buying opportunities ahead of the April halving, and MicroStrategy strengthening its cryptocurrency reserves with a major BTC acquisition.
Technical analysis on the H4 chart revealed Ethereum price falling from $4,100 to $3,050 and finding stability around the 50% Fibonacci level, suggesting potential buying opportunities.
Ethereum price currently sits just above its 50-day moving average, maintaining a bullish structure, albeit with some revisions to its bullish momentum.
However, concerns remain about the rise of meme tokens, reminiscent of the ICO frenzy of 2018, as the CryptoQuant founder noted. Despite institutional support, vigilance and risk management remain crucial to navigating the changing cryptocurrency terrain.
The cryptocurrency market anticipates stabilization after a corrective phase, with Ethereum's performance closely linked to Bitcoin's dynamics amid the impending major central bank meetings later this week.
Ethereum price is trading at $3,187.5 at the time of writing.
