The recent downturn in the cryptocurrency market has led to significant selling pressure across nearly all crypto assets, including Bitcoin. Ethereum, one of the most popular cryptocurrencies, has lost a critical support level during this sell-off, trading at $2,217 at the time of writing. The outlook for Ethereum is now under scrutiny.
Ethereum’s daily chart reveals a rising channel formation that has been in place since October 2023, which provided valuable insights to investors. However, the latest decline resulted in Ethereum closing below the support line. The intersection of EMA 21 and EMA 7 has been met with strong selling pressure, suggesting a bearish short-term scenario for Ethereum.
Key support levels to watch on Ethereum’s daily chart are $2,209, $2,161, and $2,117. A daily close below the crucial $2,161 level could lead to a loss of momentum for Ethereum. Conversely, resistance levels to monitor are $2,242, $2,293, and $2,335, with a daily close above the intersection with the formation’s support line at $2,335 potentially reigniting Ethereum’s upward trajectory.
The ETH/BTC daily chart shows a descending channel formation, with Ethereum’s recent gains causing a breakout above the formation’s resistance level. However, the resistance line has managed to hold as support after a decline in the latest bars.
Important support levels for ETH/BTC are 0.05571, 0.05510, and 0.05447. A close below the intersecting support at 0.05571 could lead to Ethereum losing value against Bitcoin. Key resistance levels are 0.05627, 0.05712, and 0.05798, with a daily close above the EMA 200 potentially signaling Ethereum’s momentum gain against Bitcoin.