Ethereum price failed to clear the $2,320 resistance and trimmed gains. ETH is now consolidating and facing hurdles near the $2,220 resistance.

• Ethereum started a fresh upward move above the $2,120 support zone.
• The price is trading below $2,220 and the 100-hourly Simple Moving Average.
• There was a break below a key rising channel with support at $2,220 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,220 and $2,320 resistance levels to start a decent increase.

Ethereum Price Dips Again

Ethereum price started a decent increase from the $2,000 zone, like Bitcoin. ETH climbed above the $2,120 and $2,200 resistance levels. However, the bears were active near $2,320 and pushed the price back below $2,220.

There was a break below a key rising channel with support at $2,220 on the hourly chart of ETH/USD. A low was formed at $2,103 and the price is now attempting a recovery wave. There was a move above the $2,120 and $2,150 resistance levels.

It cleared the 23.6% Fib retracement level of the downward move from the $2,319 swing high to the $2,103 low. Ethereum price is now trading below $2,220 and the 100-hourly Simple Moving Average.

On the upside, the price seems to be facing hurdles near the $2,220 level. It is close to the 50% Fib retracement level of the downward move from the $2,319 swing high to the $2,103 low. The next key resistance is near the $2,275 level.

The first major resistance is near the $2,320 level. A clear move above the $2,320 resistance might send the price toward the $2,420 resistance. An upside break above the $2,420 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,500 resistance zone or even $2,550 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,220 resistance, it could start another decline. Initial support on the downside is near the $2,100 level. The first major support sits near the $2,050 zone.

A clear move below the $2,050 support might push the price toward the $2,000 support. Any more losses might send the price toward the $1,880 support level in the near term. The next key support sits at $1,740.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,100

Major Resistance Level – $2,220

Today, over $3 billion worth of Bitcoin and Ethereum options expire. It will see over $2.5 billion worth of BTC and nearly $500 million worth of ETH contracts settled. How will the prices of both assets react?

These options’ expiry will take place at 8:00 UTC on Deribit, potentially inspiring volatility across the crypto market.

Bitcoin Faces $89,000 Max Pain in Today’s Options Expiry

Today, March 7, 29,005 Bitcoin contracts with a notional value of $2.54 billion are set to expire. According to Deribit data, Bitcoin’s put-to-call ratio is 0.67. The maximum pain point—the price at which the asset will cause financial losses to the greatest number of holders—is $89,000.

Additionally, Ethereum sees the expiration of 223,395 contracts with a notional value of $481.9 million. The maximum pain point for these contracts is $2,300, with a put-to-call ratio of 0.72. 

The maximum pain point in the crypto options market represents the price level that inflicts the most financial discomfort on option holders. At the same time, the put-to-call ratios, below 1 for both Bitcoin and Ethereum, indicate a higher prevalence of purchase options (calls) over sales options (puts).

Crypto options trading tool Greeks.live provided insights into the current market sentiment. They cited an overall bearish market sentiment, with traders expressing frustration over extreme volatility and choppy price action.

Bitcoin’s sharp intraday swings, such as recent moves of $6,000, have led to what traders describe as “scam both ways” conditions. According to analysts at Greeks.live, this makes it difficult to establish a clear directional trend.

“Most traders are watching the 87,000-89,000 range as key resistance, with 82,000 noted as a recent bottom, though there is significant disagreement on whether a sustainable bottom has been found,” wrote Greeks.live.

Further, the pronounced put skew reflects the broader pessimism, as traders continue to favor downside protection despite occasional upward moves. The analysts also observe that traders are adjusting their strategies amidst the high volatility.

“Several traders are selling calls at 89,000-90,000 range as a preferred strategy in this environment, with one trader reporting they’re at -260% on calls bought at lower levels,” Grreeks.live added.

The belief that the market is currently in a liquidity-driven phase has led to a focus on quick entries and exits. This level of caution comes as longer-term positions remain vulnerable to abrupt swings. External macro factors, such as shifting trade policies and tariff announcements, add to the uncertainty.

As a result, many traders are choosing to stay on the sidelines, waiting for clearer signals before committing to new positions.

“With markets on edge, where do you think price action will land? Above or below max pain?” Deribit posed in a post on X (Twitter).

Nonetheless, traders must remember that option expiration has a short-term impact on the underlying asset’s price. Generally, the market will return to its normal state shortly after and possibly even compensate for strong price deviations.

Traders should stay vigilant, analyzing technical indicators and market sentiment to navigate potential volatility effectively. Meanwhile, these developments come after US President Donald Trump signed the strategic Bitcoin reserve order.

Notably, the order was short of specific details, with many questions likely to be answered later during the White House Crypto Summit.