Ether drops near $2K as Iran tensions hit crypto, rebound hopes rise

Bitcoin and Ether have lost more than 2% of their values over the past 24 hours as the cryptocurrency market gave up the gains it accumulated earlier this week.

Ether, the leading altcoin by market cap, risks dropping below the $2,000 psychological level after failing to overcome the $2,197 resistance level once again.

Despite that, Ether could rally in the near to medium term as it ended a six-month loss streak, posting an average gain of roughly 7% in March. 

Ether added 7% in March despite the Middle East war

Ether is currently trading at $2,040, down 2.9% in the last 24 hours.

The bearish performance comes after President Trump increased the timeline for the ongoing war with Iran, eliminating hopes of a quick resolution to the crisis.

However, Ether ended a six-month loss streak, posting an average gain of roughly 7% in March despite the US-Israel war with Iran pressuring financial markets throughout the month. 

The leading altcoin by market cap recorded losses from September to February.

Onchain data shows that last month, ETH accumulation addresses — wallets with no record of selling activity — were largely busy, purchasing about 2.7 million ETH, representing their largest monthly increase in over a year.

Ethereum treasury firm BitMine Immersion Technologies was one of the biggest buyers last month.

The firm has been consistently adding Ether tokens to its treasury amid weak prices.

BitMine chairman Thomas Lee revealed earlier this week that he would be buying the market at current prices, noting that the sell-off is 90-95% over. 

Lee previously predicted that Ether would rally higher and eventually bottom in March.

Currently, BitMine is the largest corporate Ethereum treasury company, holding 4.73 million ETH.

The firm has staked 3.14 million of those Ether and intends to stake more tokens in the coming weeks and months. 

Ethereum price forecast

The ETH/USD 4-hour chart is bullish and efficient as Ether has been consolidating over the past few days. 

The near-term bias is mildly bullish as price drops below the 20-day Exponential Moving Average (EMA) near $2,085 while stabilizing after the recent pullback. 

The 50-day EMA around $2,160 caps the immediate upside, with buyers expected to face selling pressure near this level.

The still-declining 100-day EMA near $2,400 remains a major challenge for Ether in the medium term. 

The Relative Strength Index (RSI) at 57 leans to the buy side without overextension.

Meanwhile, the Moving Average Convergence Divergence (MACD) rebounded from oversold territory, signaling improving upside momentum after last week's dip.

If the bulls surpass the $2,200 resistance level, the $2,388 could present another challenge before Ether approaches its 100-day EMA price.

A daily close above this level would open the way toward $2,746 first, then $3,412.

However, if the bearish trend grows stronger, Ether could drop to the $1,911 support level.

A break below this level would expose 1,741 as the next key floor, with further targets at $1,524, ahead of major support at $1,405.