Ethereum Held Above the Long-term Uptrend
By: Alexander Kuptsikevich
Published: March 6, 2026
Market Overview
The beginning of March has shown positive momentum for Ethereum, marking a recovery after six consecutive weeks of decline. The overall cryptocurrency market cap has decreased by approximately 2% over the past 24 hours, settling at $2.41 trillion. This cooling period follows a mid-week surge, which has been characterized by significant selling from large capital holders.
Bitcoin and Ethereum Performance
Bitcoin has seen a cautious retreat for the second consecutive day, currently trading at $70.5K. This decline follows a period of growth driven by the liquidation of short positions. Resistance levels are identified at the 50-day moving average and the 61.8% retracement level from a previous decline. The bearish sentiment appears to be controlling the market, suggesting a potential movement towards lower price ranges.
In contrast, Ethereum has demonstrated resilience, managing to rebound from a long-term support level and attempting to consolidate above the $2,000 mark. The focus is now on the $2,500 area, where the 200-week moving average resides. A sustained consolidation above this level could indicate a more robust recovery for Ethereum.
Market Sentiment and Investor Behavior
Recent data from Messari indicates a resurgence of retail investors in the market, with net inflows into stablecoins surging by 415% to $1.7 billion over the past week. Additionally, the number of daily transfers has increased by nearly 10%, signaling renewed interest in cryptocurrency trading.
However, Glassnode reports that 43% of Bitcoin's market supply is currently in a loss position. As Bitcoin continues to recover, there may be increased selling pressure from investors looking to offload their holdings. This situation is compounded by declining mining profitability, which has reached historic lows due to high electricity costs, leading to further liquidation of coins by mining companies.
Expert Opinions
Arthur Hayes, co-founder of BitMEX, has characterized Bitcoin's recent price increase above $70,000 as a 'dead cat bounce,' suggesting that it does not signify a shift from a bearish to a bullish trend. He warns that the price may decline again, reflecting a cautious outlook on the cryptocurrency's immediate future.