Market Overview on March 5
Today, on March 5, Bitcoin BTC is showing signs of recovery after forming a bottom on the H4 timeframe. At the same time, BTC is holding the Flip zone on the H1 timeframe, indicating strong buying pressure. According to analysis, BTC is likely to retrace to the Fair Value Gap (FVG) on D1, around $95K – $96K, before a strong bearish signal appears.
As discussed in the article “Why Bitcoin Dump Today”, BTC is forming a medium-term downtrend. However, before continuing this trend, a retracement to a resistance zone is necessary to attract more liquidity. With BTC’s price action, Ethereum (ETH) is also expected to see a recovery, presenting a potential trading opportunity for investors.
Learn more: What is Ethereum?
ETH Technical Analysis: Key Entry Points
Based on BTC’s price movements, ETH is expected to recover similarly, with key price levels as follows:
• Entry: $2,113
• Stop Loss: $1,980
• Take Profit: $2,550 (H2 high)
Source: TradingView
Detailed Analysis
- H4 Timeframe: ETH is forming an accumulation structure with strong support around $2,000 – $2,050, where buyers could step in.
- H1 Timeframe: ETH has not broken the key Flip zone, indicating that the short-term uptrend remains valid.
- Risk: If ETH loses the $1,980 support level, the price could decline further, making a Stop Loss essential.
Trading Strategy
Investors may consider a Buy Limit strategy at $2,113, expecting ETH to recover toward $2,550 following BTC’s retracement. However, closely monitoring BTC’s movements is crucial, as a breakdown of BTC’s support could pressure ETH downward.
Important Notes
• Observe price action at $2,113 to confirm a reversal signal.
• If BTC breaks below its key structure, ETH might lose support and fail to reach the Take Profit target.
Conclusion
With BTC’s recovery signals, ETH could take advantage of this momentum and rise toward $2,113 before facing stronger volatility. Traders should adhere to risk management strategies and monitor market developments to make well-informed decisions.
