Technical analysis is an important indicator that investors, especially those who trade 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 $2046? Let’s take a detailed look at the charts, important support and resistance levels.
Daily Chart Analysis of Ethereum
The most important formation structure that stands out in the daily chart of Ethereum is the ascending channel formation. Ethereum, which touched the support line on November 13th and November 19th, accelerated its upward momentum by breaking the EMA 200 (red line) level after the rise caused by the news. Over the weekend, a possible support or resistance breakout will determine the direction for Ethereum, which is consolidating in a narrow range.
The most important support levels that need to be followed in the daily chart of Ethereum are respectively $2031, $1928, and $1875. Especially the $1928 resistance, which played an important role last week in ensuring that Ethereum’s price does not lose momentum, holds great significance. If the daily bar closes below this level, it will cause Ethereum to lose its upward momentum.
The most important resistance levels that need to be observed in the daily chart of Ethereum are respectively $2139, $2246, and $2336. Especially, if the daily bar closes above the $2139 level, which posed a major obstacle in the recent uptrend, it will enable us to witness the highest levels of recent years in the Ethereum market.
Two-Hour Chart Analysis of Ethereum
The first formation that stands out on the two-hour chart of Ethereum is the support trendline. In this structure, the only breakout that occurred on November 22nd caused concern among investors trading in the futures market, but this breakout remained only as a bear trap. If the price of ETH falls below the EMA 200 level in the last bar formation, it will trigger a short-term decline.
The most important support levels that need to be followed for Ethereum in the two-hour chart are respectively $2031, $2001, and $1967. Especially, if the bar closes below the $2031 level intersecting with the EMA 200 level, it will cause a short-term drop in Ethereum’s price.
The most important resistance levels that need to be observed in the two-hour chart of Ethereum are respectively $2067, $2095, and $2131. Especially, if the bar closes above the $2095 level, it will lead to the surpassing of the EMA 7 and EMA 21 levels and enable a short-term increase in Ethereum’s price.
