Technical analysis in the cryptocurrency market is a crucial indicator that investors, especially those trading in the futures market, should continuously monitor. But what clues does technical analysis provide us about Ethereum, which was trading at $2036 at the time the article was written? We examine it with a detailed chart analysis and key support and resistance levels.
Ethereum Daily Chart Analysis
The rising channel formation on the Ethereum chart, which has been ongoing since July 2021, continues to gain the confidence of investors. After the recent support touch, Ethereum gained significant momentum, but lately, it has been consolidating in a narrow range, which could cause concern among investors. A break of support or resistance during this process will determine the direction for Ethereum.
The most important support levels to follow on the daily chart for Ethereum are; $1996 / $1957, and $1914 respectively. Particularly in the short term, a daily bar closing below the $1996 level will lead to a loss of momentum in the Ethereum price.
The most important resistance levels to watch on the daily chart for Ethereum are; $2066 / $2132, and $2192 respectively. Especially, a daily bar closing above the significant barrier of $2132 encountered during the last rise will accelerate the momentum in the Ethereum price.
Ethereum Four-Hour Chart Analysis
The most notable formation structure on the four-hour chart for Ethereum is the rising channel formation. The levels touched by the last bar formations on Ethereum will be the start of a make-or-break period. In addition, the price consolidating in a narrow range could negatively affect Ethereum in the short term.
The most important support levels to follow on the four-hour chart for Ethereum are; $2019 / $1987, and $1941 respectively. Particularly, a bar closing below the $1987 level will lead to a support break and cause Ethereum’s price to lose momentum in the long term.
The most important resistance levels to be aware of on the four-hour chart for Ethereum are; $2076 / $2130, and $2189 respectively. Especially, a bar closing above the $2076 level will help Ethereum’s price gain momentum in the short term.
- Ethereum’s chart analysis reveals future trends.
- Key support and resistance levels are critical indicators.
- Short-term price consolidations may signal shifts in momentum.