For investors, especially those trading in the futures market, technical analysis is an important indicator in the cryptocurrency market. So, what does technical analysis mean for Ethereum, currently trading at $2046? Let’s take a detailed look at the charts, important support, and resistance levels.
The most notable formation structure in Ethereum’s daily chart is the ascending channel formation. After touching the support line on November 13th and 19th, Ethereum accelerated its upward momentum by breaking the EMA 200 (red line) level following a rise in news. The direction of Ethereum will be determined by a possible support or resistance break over the weekend, leading to its consolidation within a narrow range.
The most important support levels to be followed in Ethereum’s daily chart are $2031, $1928, and $1875, respectively. Particularly, the $1928 resistance played a significant role in maintaining Ethereum’s momentum last week. If the daily candle closes below this level, it will cause Ethereum to lose its upward momentum.
On the other hand, the most important resistance levels to be observed in Ethereum’s daily chart are $2139, $2246, and $2336, respectively. If the daily candle closes above the $2139 level, which has been a major hurdle in the recent rise, it will lead us to witness the highest levels in the Ethereum market in recent years.
In Ethereum’s two-hour chart, the first notable formation is the support trend line. Although the break that occurred on November 22nd raised concerns among investors trading in the futures market, this break remained only a false alarm for a month. If the ETH price falls below the EMA 200 level in the last candle formation, it will trigger a short-term decline.
The most important support levels to be followed for Ethereum in the two-hour chart are $2031, $2001, and $1967, respectively. Especially, if the candle closes below the $2031 level, which intersects with the EMA 200 level, it will lead to a short-term decline in Ethereum’s price. As for resistance levels, $2067, $2095, and $2131 are prominent, and closing above the $2095 level will lead to a short-term price increase.