The cryptocurrency market, with a focus on technical analysis, is a critical indicator for investors, particularly those trading in the futures market. As Ethereum trades around $2290, the question arises: what insights does technical analysis provide for Ethereum? A detailed examination of charts and key support and resistance levels is explored.
On the daily chart, Ethereum continues to form a rising channel pattern, which has been providing clues to investors since July 2022. The recent bar closures have shown profit-taking on the Ethereum front, though the selling pressure was short-lived.
Important support levels to watch on Ethereum’s daily chart are $2278, $2224, and $2163. A daily bar closure below the crucial $2278 support level could lead to selling pressure on Ethereum’s price.
On the resistance side, the key levels to monitor are $2345, $2405, and $2490. A daily closure above the significant barrier of $2345, which has been a major obstacle in recent weeks, could trigger a substantial momentum in Ethereum’s price.
The weekly Ethereum chart shows a narrowing wedge formation that broke out last week but faced selling pressure and did not sustain above that region. The upcoming weekly closure will be critical for Ethereum’s price direction.
The most important support levels on the weekly chart are $2140, $1914, and $1734. A weekly bar closure below the pivotal $2140 level could lead to significant selling pressure on Ethereum’s price. Conversely, resistance levels to watch are $2447, $2727, and $3020. A weekly closure above the initial $2447 level could result in Ethereum reaching its highest levels since June 2022, potentially creating significant upward momentum.