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The process that many analyses in the cryptocurrency market refer to as the longest bearish period is still ongoing. While the interest rates remained unchanged by the Fed last week, some officials announced that interest rate hikes could be expected in the future. These statements immediately had an impact on the cryptocurrency market and caused a decline in many crypto assets. So, what is happening in the Ethereum camp, which is experiencing the worst period in recent times?
Ethereum Chart Analysis
The worst period in recent times continues for Ethereum. Especially in the rally that took place in 2021, the importance of the NFT market was significantly high. However, both the increasing popularity of Layer-2 networks and the loss of users in the ecosystem have had a significant impact on the Ethereum price.
There is a notable formation in the weekly chart, but this structure has been support-oriented, and it may be too early to call it an ascending channel formation. The squeezed price structure indicates that the price needs to make a decision instead of moving steadily. The fact that the EMA 200 average acted as resistance in the last 2 candles is a negative situation for ETH.
The important support levels that need to be followed for ETH in the long term are as follows: $1522, $1373, and $1140 levels. Especially, if a weekly close is made below $1522, this structure may be broken after more than a year, leading to a significant drop in price. The resistance levels that need to be paid attention to for ETH are respectively $1667, $1759, and $2162. Especially, surpassing the $2162 level may cause the ETH price to rise to $3200 after a year-long ATH.
Ethereum Hourly Chart Analysis
There is no formation in the 1-hour Ethereum chart, and this indicates that the ETH price has been shaped by news flow in recent times. The high level of volatility has led to many bear or bull traps in support and resistance levels. Especially futures traders should pay close attention to bar closures when trading.
The support levels for ETH in the short term are respectively $1581, $1574, and $1568. Particularly, if the price stays below $1574, it may cause the EMA 7 and EMA 21 averages to act as resistance.
The resistance levels for ETH in the short term are respectively $1590, $1596, and $1601. A 1-hour closing above $1601 will greatly help the price to mature.
