Technical analysis is a crucial indicator that investors, especially those trading in the futures market, need to constantly follow in the cryptocurrency market. So what clues does technical analysis provide for Ethereum, which is currently trading at $2039? Let’s examine it in detail with a comprehensive chart analysis and important support and resistance levels.
Daily Chart Analysis of Ethereum
The first notable formation structure in Ethereum’s daily chart is the ascending channel formation. The fact that this structure has been in effect since July 2022 further increases interest in the formation. With the recent upward movement in the cryptocurrency market, Ethereum touched the support line in October, gaining significant upward momentum after this development. However, it encountered a major obstacle at the last resistance level.
The first important support levels to watch for Ethereum on the daily chart are $1934, $1818, and $1744, respectively. Particularly, if the daily bar closes below the $1934 support level, it may lead to a significant loss of momentum in Ethereum’s price.
The most important resistance levels to follow for Ethereum on the daily chart are $2136, $2226, and $2320, respectively. Particularly, if the daily bar closes above the $2136 resistance level, it will help Ethereum gain momentum in the short term.
Four-Hour Chart Analysis of Ethereum
The first notable formation structure in Ethereum’s four-hour chart is the ascending channel formation. After the rise caused by news on November 9, a resistance breakout occurred, but this bar formation remained as a bull trap. The lack of any breakout in the support line increases confidence in the formation.
The most important support levels to watch for Ethereum on the four-hour chart are $2010, $1988, and $1963, respectively. Particularly, if the bar closes below the $2010 level intersecting with EMA 7 (blue line), it may lead to a loss of upward momentum in the short term.
The most important resistance levels to pay attention to in Ethereum’s four-hour chart are $2069, $2104, and $2135, respectively. Particularly, if the bar closes above the $2069 resistance level, it will cause the price to gain momentum.
