In recent days, there has been a decline in the cryptocurrency market due to the decrease in volatility. At the time of writing, Bitcoin is trading at $34,883, and the failure to break the $35,000 resistance level is causing concerns. So, what is happening with the altcoin king Ethereum? Let’s examine the detailed chart analysis and important support and resistance levels.
The descending channel formation in the Ethereum chart since April is noteworthy. With the recent uptrend, a resistance breakout occurred. However, with the recent drop, the resistance line acted as support. This situation may lead to a significant recovery in Ethereum’s price.
The notable support levels on the daily chart of Ethereum are $1826, $1778, and $1733, respectively. Especially, if the daily candle closes below the $1826 level, it could result in a significant drop in Ethereum’s price. In such a case, the EMA 200 (red line) is expected to act as support; otherwise, the formation support line will be the last stop for Ethereum.
The notable resistance levels on the daily chart of Ethereum are $1912, $2005, and $2125, respectively. Particularly, breaking the $1912 level that has been active in recent days will cause the price to rise further due to the effect of the formation breakout. With such a development, Ethereum’s price will reach its highest level since July.
In the four-hour chart of Ethereum, the white line represents the resistance line of the descending channel formation, and there have been two touches above this line after the breakout. However, it is important to note that Ethereum’s price has remained below the EMA 7 and EMA 21 averages on the four-hour chart due to the recent drop.
The notable support levels for Ethereum are $1862, $1849, and $1828, respectively. Especially, if the candle closes below $1849, it will lead to a formation within the structure and weaken the upward momentum.
The notable resistance levels to watch for Ethereum are $1877, $1893, and $1912, respectively. Particularly, a four-hour candle closing above the $1912 level will result in a significant rise in Ethereum.