Ethereum price has been consolidating above the $3,000 level for the past week, after reaching a new high of $3,525 on February 29. However, the second-largest cryptocurrency by market cap could be poised for a breakout above $4,000, following the lead of Bitcoin, which has surged to its highest level since November 2021. In this article, we will examine the factors that are driving the crypto market, the technical and fundamental outlook for Ethereum, and the best strategies to trade Ethereum in March.

Crypto Market on Fire as Bitcoin Breaks Resistance

The crypto market has been on fire in the past few days, as Bitcoin has broken through several resistance levels and reached a new high of $57,055 on March 2. The leading cryptocurrency has gained more than 15% in the past week, and more than 30% in the past month, adding over $200 billion to its market cap. Bitcoin has been boosted by several positive factors, such as:

The approval of the first Bitcoin futures ETF in the US, which has attracted billions of dollars of institutional and retail investment into the crypto space.
The adoption of Bitcoin as legal tender by El Salvador, which has increased the demand and the legitimacy of the cryptocurrency in the global market.
The anticipation of further stimulus and monetary easing by the US and other major economies, which has increased the inflation and devaluation fears, and the appeal of Bitcoin as a hedge and a store of value.

Bitcoin’s rally has also lifted the sentiment and the performance of the entire crypto market, as many altcoins have followed suit and posted impressive gains. The total market cap of all cryptocurrencies has reached a new high of $1.8 trillion, surpassing the previous peak of $1.7 trillion in May 2021.

Ethereum Price Outlook: Bullish Momentum and Fundamentals

Ethereum price has been lagging behind Bitcoin in the past week, as it has failed to break the $3,500 resistance level and has traded in a narrow range between $3,000 and $3,450. However, Ethereum has several bullish factors that could propel it to new highs in the near future, such as:

The launch of the Ethereum 2.0 upgrade, which is expected to improve the scalability, security, and efficiency of the network, and to transition from the proof-of-work to the proof-of-stake consensus mechanism, which will reduce the energy consumption and the environmental impact of the network.
The growth of the decentralized finance (DeFi) and the non-fungible token (NFT) sectors, which are mostly built on the Ethereum platform, and which have increased the demand and the utility of the Ethereum token, as well as the network activity and the fees.
The decline of the Bitcoin dominance index, which measures the market share of Bitcoin relative to the rest of the crypto market, and which has dropped from 58% to 53% in the past week, indicating that investors are diversifying their portfolios and allocating more funds to altcoins, especially Ethereum.

From a technical perspective, Ethereum price is showing signs of a bullish reversal, as it has formed a double bottom pattern on the daily chart, with the neckline at $3,500. A break above this level could confirm the pattern and signal a new uptrend, with a potential target of $4,500, which is the measured move of the pattern. The daily RSI is also rising and approaching the overbought territory, indicating a strong momentum and buying pressure.

How to Trade Ethereum in March

Trading Ethereum in March could be a profitable opportunity, as the crypto market is in a bullish mode and Ethereum price is poised for a breakout. However, traders should also be aware of the risks and the volatility involved, and use proper risk management and trading strategies. Some of the best practices to trade Ethereum in March are:

Use a reputable and regulated broker or exchange, such as FX Empire, which offers a wide range of crypto assets, trading platforms, tools, and educational resources.
Use technical analysis and indicators, such as support and resistance levels, trend lines, moving averages, and RSI, to identify the entry and exit points, and the direction and strength of the trend.
Use fundamental analysis and news, such as the Ethereum 2.0 upgrade, the DeFi and NFT sectors, and the Bitcoin dominance index, to gauge the market sentiment and the demand and supply factors.
Use stop-loss and take-profit orders, to protect your capital and lock in your profits, and adjust them according to the market conditions and your risk appetite.
Use leverage and margin trading, to amplify your profits and access more trading opportunities, but also be careful of the increased risk and potential losses.