Technical analysis is a crucial indicator for investors, especially those trading in the futures market. So, as Ethereum is trading at $2350 at the time of writing, what hints does the technical analysis provide us? We examine it with detailed chart analysis and key support and resistance levels.
Ethereum Chart Analysis
In the daily Ethereum chart analysis, the rising channel formation continues since July 2022. Ethereum’s price, which touched the support line in the second week of October, is gradually approaching the resistance line with an almost two-month momentum increase.
The most important support levels to follow on the daily Ethereum chart are 2214 / 2161, and 2088 dollars respectively. A daily bar closing below the $2214 level, which played a significant role in recent correction movements, could cause Ethereum’s price to remain below the EMA 7 (blue line) level and face selling pressure in the short term.
The most important resistance levels to watch on the Ethereum chart are 2381 / 2442, and 2514 dollars respectively. A daily bar closing above the $2381 level, which has been a significant obstacle to price increases in the last two days, will help Ethereum’s price gain momentum.
Ethereum Weekly Chart Analysis
The most noticeable formation structure in Ethereum’s weekly chart is the inverse triangle formation. While this formation structure usually leads to a higher probability of a decline in traditional markets, a resistance breakout occurred in the Ethereum chart with the last bar increase. If the weekly close is above the resistance line, it will cause Ethereum’s price to gain significant momentum.
The most important support levels to be aware of on the Ethereum weekly chart are 2053 / 1913, and 1782 dollars respectively. A weekly bar closing below the $2053 level will result in Ethereum’s price facing significant selling pressure.
The most important resistance levels to follow on the Ethereum weekly chart are 2394 / 2719, and 3024 dollars respectively. A weekly closing above the $2394 level, which emerged during the recent rise and previously worked in July 2022, will accelerate Ethereum’s momentum.