A 25% Correction In Ethereum's Price To $1,400 In March Will Keep Bitcoin Steady At $24,000

Bitcoin (BTC) is the world's largest cryptocurrency, and it has been consolidating in line with the larger cryptocurrency market since the start of the year 2023 after having a strong start. There has been significant selling pressure on Bitcoin (BTC) over the past week, and the weekly charts show Bitcoin (BTC) down by 4 percent in the last week as a result.

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BTC is currently trading at a price of $23,456 and a market cap of $456 billion as of press time, down 1.45 percent from its press time high of $23,456. A number of macro indicators, such as the rise in inflation, have been affecting Bitcoin and the overall crypto market in recent months.

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There is a possibility that an economic recession in the US could occur as a result of rising interest rates by the Federal Reserve in the future, according to several market analysts. The ones that will be most affected by such a scenario are the ones that are risk-on, such as Bitcoins and other cryptocurrencies.

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It is expected that the trajectory will remain downward as long as the macro headwinds remain strong. The number of Bitcoin whale addresses, on the other hand, has continued to decline over the past few months. Santiment, a provider of on-chain data, reported the following:

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Whale #Bitcoin addresses continue to decline, with 2,011 remaining compared to 2,266 one year ago. After setting the #AllTimeHigh on February 8th, prices jumped +70% over the next 10 weeks.

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Ethereum is showing signs of weakness, just like Bitcoin

In recent months, Ethereum (ETH), the world's second-largest cryptocurrency, has been on a similar trajectory to Bitcoin in terms of its price movements. With a market capitalization of $201 billion, Ethereum is also facing heavy selling pressure over the last week and is currently trading at $1,645 levels with a price of $1,645 per token.

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With the Shanghai upgrade set to launch before the end of the month, Ethereum developers are now gearing up for its launch. The upgrade of the network will be one of the most important upgrades for investors since it will allow them to withdraw staked ETH that has been staked. It is believed by some market analysts that this could lead to additional selling pressure on ETH as liquidity increases as a result of this. On the other hand, CryptoQuant, a provider of on-chain data, has a contrarian point of view. The report notes the following:

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It is our belief that after the Shanghai upgrade, staking withdrawals will begin to be available for ETH, and there will be little selling pressure for the cryptocurrency. We have calculated this by looking at how much profit and loss we have made as a result of staked Ethereum. A lot of staked ETH is at a loss, and a large percentage of the depositors in the largest staking pool is also at a loss, which supports the argument.

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Taking a look at the technical chart, Ethereum could be hinting at another 25 percent correction from its current levels based on the current price. Ethereum has been finding it increasingly difficult to break above the technical resistance level of $1,650-1,700 on a daily basis, as we are all aware. In the past, every failed breakout at these levels in the past has been followed by a strong pullback of the price.

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Ethereum (ETH) is predicted to hold a 25 percent correction from its current levels to $1,250 in the near future if history is any indication. Any strong breakout above $1,650-1,700, though, would likely lead to a price rally to $2000 if the bulls surprise like they did the last time.

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