Ethereum has experienced a much-needed surge above the $2,000 level, a key psychological and technical mark that bulls have struggled to reclaim since March 10. This breakout sparked optimism in the market, but the momentum was short-lived, as ETH quickly pulled back below the level and was unable to confirm a solid hold. Analysts widely agree that a strong and sustained move above $2,000 is critical for Ethereum to initiate a broader recovery rally.

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Despite the hesitation at resistance, on-chain data shows signs of growing investor confidence. According to Santiment, investors have withdrawn over 360,000 ETH from centralized exchanges in the last 48 hours. This shift is often interpreted as a bullish signal, suggesting that large holders are moving their assets to private wallets, possibly in anticipation of higher prices.

Meanwhile, the broader macroeconomic landscape continues to apply pressure. Trade war tensions and unpredictable policy decisions from the U.S. government have weighed heavily on both crypto and traditional markets, intensifying volatility and investor uncertainty. Still, Ethereum’s latest exchange outflows hint at a potential trend shift — one that could favor accumulation and set the stage for the next major move, provided bulls can reclaim and hold above the $2K threshold.

Ethereum Faces Critical Test Amid Exchange Outflows

Ethereum has lost over 57% of its value since mid-December, falling from a high of around $4,100 to recent lows near $1,750. This sharp correction has created a challenging environment for bulls, who have repeatedly failed to reclaim and hold higher price levels.

Now, the $2,000 mark stands as a psychological and technical battlefield. If Ethereum can firmly establish support above this level, it could provide the foundation for a recovery rally. However, a failure to do so would likely result in further downside and reinforce the bearish trend.

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The current market landscape struggles with uncertainty. On one side, continued macroeconomic headwinds—rising trade tensions, inflation concerns, and policy shifts from the U.S. government—have weakened investor confidence and driven volatility across risk assets. On the other hand, there are signs of potential recovery and accumulation.

Top crypto analyst Ali Martinez shared data from Santiment, revealing that investors have withdrawn over 360,000 ETH from centralized exchanges in the past 48 hours. Historically, large-scale withdrawals are considered a bullish signal, as they suggest investors are moving assets into cold storage for long-term holding rather than preparing to sell.

This move could indicate growing confidence among large holders and signal the early stages of a new accumulation phase—provided Ethereum can hold above $2,000.

Price Holds Steady Below $2,000

Ethereum is currently trading at $1,960 after briefly attempting to reclaim the $2,000 mark in yesterday’s session. The psychological and technical resistance at $2,000 remains a crucial barrier that bulls must overcome to shift market momentum in their favor. Despite a small bounce from recent lows, Ethereum has struggled to gain traction amid persistent market uncertainty.

Bulls need to push ETH above $2,000 and reclaim higher levels such as $2,150 and $2,300 to confirm the beginning of a recovery phase. A sustained move above these levels would not only signal a potential trend reversal but could also attract sidelined investors back into the market. Until that happens, Ethereum remains vulnerable to continued downside pressure.

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If bulls fail to break above the $2,000 resistance in the coming sessions, Ethereum could lose support at current levels and revisit lower demand zones around $1,850 or even $1,750. With the broader crypto market still under the influence of macroeconomic volatility and weak sentiment, the coming days are likely to be pivotal for ETH’s short-term direction. A decisive move either above or below this key range will likely set the tone for the next major price action.

Featured image from Dall-E, chart from TradingView 

Cryptocurrencies price are up as traders anticipate pro-crypto remarks from US President Trump today, March 20. Bitcoin price rose to a two-week high of $87,000 before retreating to trade at around $85,250 at press time. XRP led the gains among the top ten altcoins with a 7% rise while Ethereum briefly reclaimed $2,000 before reversing to $1,990. As the crypto summit draws near will Trump’s announcements drive more gains for crypto prices? 

Will Trump Announce Zero Tax Gains During Crypto Summit? 

Speculation is rife that Trump could make a major announcement at the Blockworks Digital Assets Summit happening in New York. Crypto analyst JackTheRippler opined that the President will announce zero capital gains on USA crypto coins. Walter Bloomberg also noted that Trump would make a “major update” to his crypto strategy. 

If Trump imposes zero tax gains on cryptocurrencies, it will boost retail and institutional interest, causing massive price gains. This policy would also make the US a major crypto hub. 

Trump’s attendance at this Summit will also mark the first time that a sitting US President is attending a crypto conference. This is fuelling excitement among crypto investors, with Bitcoin price likely to hit $90,000. 

The Executive Director of the President’s Working Group on Digital Assets, Bo Hines, was among the speakers at the crypto summit earlier this week. In his remarks, he noted, 

“We are looking forward to working with our partners at Treasury, and the Secretary of Commerce in order to find those budget-neutral ways in which we can acquire more [Bitcoin]… We need as much as we can get.” 

If Trump provides clarity on how the US will acquire Bitcoin and announces a zero crypto tax policy for US-based coins, cryptocurrencies price will rebound and likely reclaim the $3 trillion market cap. 

Cryptocurrencies Price Prediction After Trump Speech 

Cryptocurrencies price could rebound after the summit as Trump’s pro-crypto remarks have always been met with a brief relief rally. For instance, earlier this month, BTC rose from around $85,000 to $93,000 within hours after Trump signed an executive order for a crypto reserve. 

However, with the market expectations already high, failure to make a major announcement could cause a resumption of bearish trends. This could push Bitcoin below $80,000 while Ethereum price may lose support at $1,800. 

Nevertheless, the total market cap shows that the market has been on a gradual rebound over the past week. If Trump’s remarks signal a bullish breakout, TOTAL could target its 100-day SMA of $3.18 trillion. 

If analysts are right and Trump withdraws capital gains on US crypto coins, altcoins like XRP and Cardano are likely to record a parabolic rally. This could see XRP price hit $3 within hours while the Cardano price forecast hints at a rally past $1. 

Therefore, it is likely that cryptocurrencies price will post gains after Trump’s speech during the Digital Assets Summit. However, this rally may be short-lived if traders rush to book profits.

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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.