Following recent developments on the evening of January 10, Bitcoin experienced a decline in value, which conversely aided the appreciation of many altcoin projects. Ethereum, the so-called king of altcoins, notably gained significant momentum, capturing the attention of investors. The ETH/BTC ratio rose over 3% in the last 24 hours, indicating a shift in investor sentiment away from Bitcoin.
Technical analysis of the four-hour Ethereum chart highlights a rising channel formation, with a resistance break in early December proving to be a bull trap, as ETH faced substantial selling pressure at the resistance level. However, Ethereum managed to cross the EMA 200 (red line) in recent bar formations, gaining notable momentum.
Critical support levels to monitor on the four-hour ETH chart are at $2343, $2304, and $2246. A close below the $2343 level, which intersects with the EMA 21 (blue line), could lead to selling pressure on the ETH price.
Important resistance levels on the same chart are identified at $2407, $2448, and $2481. A four-hour bar close above the $2407 level, which has been a significant barrier since December 25, could accelerate Ethereum’s upward trajectory.
The ETH/BTC daily chart continues to show a descending channel pattern. Ethereum’s recent surge, coupled with crossing the EMA 21 level, has given the pair momentum. Key support levels to watch are 0.05239, 0.05082, and 0.4975, while crucial resistance levels are at 0.05349, 0.05447, and 0.05626. Closing above the latter could signal further gains for Ethereum against Bitcoin.