Ethereum (ETH) struggles to find buyers after Trump Speech

Ethereum (ETH) traded within a 4% price range, bouncing between $2,067 and $1,952 on Thursday as the broader crypto market digested Donald Trump's remarks at Blockwork's Digital Asset Summit.

The price of Ethereum is hovering at around $1,977 in the early hours of Thursday, March 20, trading in a tight range between $2,067 and $1,952.

After U.S. asset management firm Bitwise announced plans to offer staking services for its Ethereum ETF investors, traders will be eyeing a potential supply squeeze that could push ETH above the key resistance at $2,100.

Will the upcoming move favor bulls?

What happened

The price of ETH moved within a 4% trading band throughout Thursday, bouncing between highs of $2,067 and lows of $1,952 as the broader crypto market digested Donald Trump’s appearance at Blockwork’s Digital Asset Summit.

While Bitcoin saw a sharper decline following the event, ETH price action remained relatively static, suggesting that investors were holding positions despite the market uncertainty.

This lack of volatility also coincided with thinner liquidity in the market compared to previous sessions, leading to choppy price action with no clear trend confirmation.

TradingView data shows that users on the world’s largest crypto exchange Binance traded 691,000 ETH on March 19, contrasting with the volumes of 384,000 ETH at press time on Thursday, March 20.

Despite the decline in market activity at least one support level was defended.

At the $1,950 support level, sellers were unable to exert enough pressure to continue driving the price lower.

This lack of selling strength could be attributed to Trump’s appearance at Blockwork’s Digital Asset Summit, which had positive implications for the long-term health of the crypto industry in the U.S.

However, multiple attempts to break through the $2,070 resistance were met with selling pressure, suggesting that traders were waiting for a more significant fundamental catalyst to determine the next major price move.

This resistance level is closely followed by the Fib 1.618, providing a final barrier for buyers to overcome.

What's next

In a move that is sure to have bullish implications for ETH, U.S.-based asset management firm Bitwise announced plans to offer staking services for its Ethereum ETF investors.

The firm currently manages an estimated $193 million in ETH ETF holdings.

By allowing traditional investors to earn staking rewards while maintaining exposure to Ethereum within a regulated investment framework, this move is expected to have interesting implications for ETH.

Firstly, by enabling staking, a portion of the ETH market supply could shrink significantly, as more assets become locked in staking contracts.

Historically, similar supply constraints have acted as bullish catalysts for Ethereum price. This also comes just days after Ethereum successfully deployed the Hoodi network update.

However, in the short term, this move could also be hampered by the fact that the latest Fed rate decision saw the central bank opt for a pause in the current interest rate hike cycle.

This decision could lead to short-term traders attempting to place early bets on this long-term narrative, potentially leading to a breakout above the $2,100 resistance zone in the coming trading sessions.

Where is Ethereum (ETH) price headed next?

Technical analysis on the four-hour chart suggests that Ethereum price is facing strong resistance at $2,152, indicated by the Donchian Channel (DC) upper band, and support is at $1,754, indicated by the lower band. Currently, ETH is trading at around $1,977. A breach above the midline at $2,000 would indicate a shift in market sentiment.

Volume analysis highlights decreasing sell pressure, with 386.49K ETH traded, lower than previous sessions, suggesting sellers are losing momentum. The Klinger Oscillator, a volume-based indicator, shows a negative reading at -3.41K, while its signal line remains lower at -24.75K. This bearish divergence suggests ETH lacks sufficient bullish momentum for an immediate surge but could gain strength if buyers step in above $2,000.

If ETH manages to retest and hold the $2,100 price point, it could continue rallying to target $2,550, aligning with previous highs. Conversely, failure to break resistance may trigger a pullback to $1,900, with $1,754 serving as the key support level. The direction of the next move will depend on volume expansion—higher buying activity above resistance would validate a sustained rally, while continued weakness could risk a downturn toward March’s lows.