Technical analysis is an important indicator that investors, especially those trading in the futures market, need to constantly follow in the cryptocurrency market. So what does technical analysis tell us about Ethereum, which is currently trading at $2042? Let’s take a detailed look at the charts, important support and resistance levels.
Four-Hour Ethereum Chart Analysis
The first notable formation on the four-hour Ethereum chart is the ascending channel pattern. During the process that started on October 24, the breakout of resistance occurred with the news of the Ethereum ETF application on November 9. Furthermore, the fact that the resistance line is acting as support in recent bar formations strengthens the price of Ethereum in this area.
The most important support levels for Ethereum on the four-hour chart are respectively $2035, $2014, and $1978. If the closing price falls below the significant $2035 level, it would cause the price to re-enter the channel and lose its upward momentum.
The most important resistance levels to watch on the four-hour chart for Ethereum are $2059, $2079, and $2101. A closing price above the intersection of the 7-day Exponential Moving Average (EMA) and the $2059 level would help Ethereum gain a new upward momentum.
Weekly Ethereum Chart Analysis
The first notable formation on the weekly Ethereum chart is the symmetrical triangle pattern. Ethereum broke through the resistance level of $2027 during the November 9 rally and is currently facing a significant battle in this area. The market’s calmness over the weekend has raised curiosity about the closing price of Ethereum.
The most important support levels to watch on the weekly Ethereum chart are $1778, $1528, and $1381. Although these levels may not be on the short-term agenda, a loss of momentum in Ethereum’s price could bring these levels into focus.
The most important resistance levels to watch on the weekly Ethereum chart are $2509, $3286, and $4758. Recent developments in Bitcoin ETF applications have brought these levels into focus. In particular, surpassing the $2509 level not seen since March 2022 would mark the beginning of different stories for Ethereum’s price and the Ethereum ecosystem.
