- Ethereum staged a massive recovery amid March sessions.
- The leading alt climbed by over 50% from its 2022 lowest level.
- April might see the alt retaining the bullish bias.
Ethereum’s massive recovery faded over the previous three days as market participants evaluated the strong comeback. The digital coins have plummeted to $3,258, lower than the week’s $3,483 high. However, ETH remained approximately 50% up from its lowest price this year.
Ethereum Comeback Fades
Ethereum and other alts witnessed bullish trends over the past couple of days. ETH had its price climbing towards $3,400 from $2,154 lows within a few weeks. The optimism emerged as market players remained interested in risky assets despite Fed’s hawkish stance during the March meeting.
Also, the altcoin performance mirrored other assets such as stocks. The stock market has seen massive recoveries over the past couple of weeks, with NASDAQ 100 leading the gainers. Moreover, cryptos boas a high connection with American indices.
The latest Axie Infinity attack, where hackers escaped with more than $600 million, also contributed to the Ethereum retreat. Axie Infinity is an Ethereum based blockchain network. Investors remain disturbed about the massive cash currently back in the decentralized finance marketplace. DeFi Llama reported more than $220B of this money at risk. Besides, regulations governing the sector are limited.
Another thing contributing to Ethereum’s latest retreat is profit-taking by investors. Historically, pullbacks follow massive parabolic upsurges.
April remains a significant month for ETH since the probability of developers progressing with upgrades is high. In March, developers pushed the new and old version merge in Kiln testnet. If things go as planned, they might move the updated version to the mainnet.
Ethereum Price Forecast
According to the daily chart, the Ethereum price formed a break-retest set up within the past couple of days. For now, the alt trades at $3,254, a vital area since it was the highest level on 9 February. The crypto remains beyond the 25- and 50-day MAs while the RSI climbs.
Therefore, ETH’s April outlook remains bullish. $4,000 remains the crucial level to watch. However, ETH will ruin this narrative with a dip beneath $3,000.
