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Why the end of the Middle East conflict won’t save Ethereum
- It is widely believed that stabilizing oil prices will help the crypto market move upward.
- Happy Coin News analyst Yuriy Saveliev believes that a sharp rise is still unlikely.
- Other analysts also do not rule out a decline.
In light of a potential deal between the United States and Iran, it is worth addressing why the end of the Middle East conflict may not prevent Ethereum from falling.
On March 25, it was reported that Iranian authorities had received a conflict resolution plan approved by U.S. President Donald Trump, and according to him, negotiations had already begun. Following this news, oil prices dropped by 6.5% as market participants anticipated a quick reopening of the Strait of Hormuz.
Meanwhile, Ethereum’s price barely changed and continues to fluctuate within a narrow range of $2,100 to $2,200. At the same time, there are signs of a recovering bullish trend. For example, the asset’s price is above the 800-hour exponential moving average, and the RSI index remains in a neutral zone.
However, ETH often moves contrary to the expectations of most traders. When the United States and Israel attacked Iran, analysts predicted a sharp drop in the crypto market, yet the price only fell to $1,840 before rising to $2,390. Therefore, the announcement of the end of hostilities could have a similar effect: instead of rising, the price may decline.
Trader Merlijn The Trader reasonably believes that Ethereum’s price will drop if bears break the $2,000 support level. In the author’s view, the probability of this scenario is high. Based on past trends, the RSI on the daily chart is expected to move into the oversold zone, which could push ETH down to at least $1,800.
Projected Ethereum price movement and RSI index.
See also: "Institutions name cryptocurrencies they plan to buy"
