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ETH Technical Outlook Hangs in Balance as USD, Interest Rates Trend Down

• The short-term recovery of ETH could depend on the USD and interest rates trend.
• Technical indicators suggest short-term consolidation.
• Ethereum holders are hoping for a respite from the bears, with some expecting the Shanghai upgrade to help.

ETH’s Short-Term Recovery

The first few days of March have failed to give Ethereum [ETH] holders a much-desired breather. Despite the reality of despair, any hope for respite could depend on one condition, according to Chris Burniske. The ex-crypto investment head at ARKInvest opined that ETH, alongside Bitcoin [BTC], would only recover if the dollar and interest rates drop.

Technical Outlook

For much of February the dollar and rates went higher, while crypto hung in there. However, technical indicators such as Bollinger Bands (BB) and Directional Movement Index (DMI) suggest that ETH might not be ready for a rally yet. In addition, liquidations over the past few days have faded signs of a bullish crossover.

Shanghai Upgrade

Some ETH holders are optimistic that the Shanghai upgrade could offer a slide ways from the bears. This upgrade is expected to bring numerous improvements related to scalability, security and privacy features which could boost confidence in Ethereum’s blockchain network.

Market Cap in BTC Terms

Realistic or not, here’s ETH’s market cap in BTC’s terms Striving for stronghold Recall that the first two months of the year brought glaring greens to the market, with the top two cryptocurrencies earning gains for their holders. In addition, tools such as Ethereum Profit Calculator can be used by investors to check their portfolio performance against current market conditions.

Conclusion Although technical indicators do not currently point towards an imminent rally for ETH prices, some are still expecting potential upside catalysts such as Shanghai upgrade or dollar/interest rate drops to bring back positive momentum into cryptocurrency markets soon