Ethereum Price Prediction: ETH Technical Analysis

Check out the Ethereum price prediction!

Market Overview on March 20

Today, March 20, on the H4 timeframe, Bitcoin BTC is approaching a key resistance zone at the descending trendline — a level where BTC has previously faced multiple rejections. If the price gets rejected again at this area, it may lead to a downward correction.

Source: TradingView

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 Overview on March 20

Fundamental Analysis of Ethereum

The price of Ethereum ETH has increased from $1,923.05 to $2,056.03. Meanwhile, ETH Open Interest has risen from $18.16B to $19.94B, and trading volume has surged from $22.02B to $42.95B compared to the previous day.

This indicates a more positive market sentiment and growing investor confidence.

Source: CoinGlass

Current ETH liquidations indicate that investors are favoring long positions over short positions. The total long liquidations amount to $2.9M, while short liquidations stand at $738.65K across various exchanges.

Source: CoinGlass

Related News:

Justin Sun Staking ETH

• News: Justin Sun – the founder of TRON – has staked a significant amount of ETH, with figures cited around $100 million.

Justin Sun staked $100,000,000 $ETH.

You are not bullish enough. All you need is patience. pic.twitter.com/LxfE13gKT6

— Ted (@TedPillows) March 18, 2025

About Justin Sun:

• Justin Yuchen Sun, born in 1990, is a Grenadian entrepreneur of Chinese descent and the founder of the Layer 1 blockchain platform TRON.

This staking move is interpreted as a signal that the bullish sentiment is not over and that there are high expectations for ETH’s continued price and volume growth.

Ethereum’s Pectra Upgrade

Ethereum’s Pectra upgrade – merging the Prague and Electra updates – is being implemented to enhance the network’s scalability, reduce transaction fees, and improve staking efficiency.

The upgrade aims to boost performance by reducing transaction processing delays and increasing the network’s capacity to handle a larger number of transactions. In addition, it optimizes data processing and storage – for example, by increasing blob capacity and incorporates account abstraction. This allows users to pay transaction fees with tokens other than ETH, such as USDC or DAI.

Furthermore, flexible staking is achieved through improvements like EIP-7251 and EIP-7002, which enhance staking efficiency and simplify the withdrawal process for validators.

According to Coinbase and other sources, Pectra is scheduled for testing on a new testnet called Hoodi around mid-March, with a mainnet launch anticipated between late March and April.

News Supporting or Warning About ETH Price Predictions

Bullish Outlook:

• CoinCodex forecast that ETH could surpass the $4,000 mark by May, driven by strong technical signals, accumulation from investors, and improvements brought by the Pectra upgrade.

Bearish Outlook:

• Conversely, some analyses from Cointelegraph indicate that trading volumes on Ethereum’s DEXs have dropped significantly (for instance, a 34% decline according to some reports), which could exert short-term downward pressure on the price and increase market volatility.

According to Santiment, the total holdings in this category have increased to 19.59 million ETH, indicating strong accumulation from long-term wallets. Notably, these wallets have added over 420,000 ETH recently.

The peak accumulation occurred on March 12, when ETH inflows into whale addresses hit a record high of 345,210 ETH, signaling heightened interest from large investors.

Source: X

Source: TradingView

Conclusion

With BTC’s recovery signals, Ethereum could take advantage of this momentum and rise toward $2,142 before facing stronger volatility. Traders should adhere to risk management strategies and monitor market developments to make well-informed decisions.