The excitement around a potential spot Bitcoin ETF continues to grow, causing increased volatility in the cryptocurrency market, including Bitcoin and other assets. Ethereum, the so-called altcoin king, has recently seen a decrease in its upward momentum. At the time of writing, Ethereum trades at $2245, and technical charts offer insights into its future direction.
Ethereum’s daily chart analysis shows a rising channel formation that has persisted since July 2022, providing key signals to investors. A break of support or resistance levels could determine Ethereum’s price trajectory. Important support levels to watch are $2191, $2123, and $2018. A daily close below the $2191 level could lead to short-term selling pressure.
On the resistance side, key levels on the daily chart are $2283, $2348, and $2438. A daily close above the $2283 level, which has acted as resistance since January 3, could signal a gain in momentum for Ethereum’s price.
The four-hour chart for Ethereum highlights a narrowing wedge formation, suggesting a potential for an upward breakout. However, the 200 EMA (red line) has been acting as resistance, which could be seen as a negative sign in the short term. Support levels to monitor are $2236, $2193, and $2158. A four-hour close below $2236 could indicate a short-term decline.
For resistance on the four-hour chart, Ethereum’s price could gain momentum if it closes above the $2271 level, which intersects with the 200 EMA. Other resistance levels include $2303 and $2331.