Technical analysis in the cryptocurrency market is a crucial indicator that must be constantly monitored, especially for investors trading in futures. At the time the article was written, Ethereum was trading at $2036, and we examined the support and resistance levels with detailed graphic analysis.
The ascending channel formation, which has been ongoing since July 2021 on Ethereum’s daily chart, continues to gain investors’ confidence. After the last touch of support, Ethereum gained significant momentum, but it has been fluctuating in a narrow range recently, which may cause concern among investors. The breaking of the support or resistance level will determine the direction of Ethereum.
The most important support levels to follow on the daily chart for Ethereum are, respectively, $1996 / $1957, and $1914. In the short term, a daily bar closing below the $1996 level will lead to a loss of momentum in the Ethereum price.
The most important resistance levels to follow on the daily chart for Ethereum are, respectively, $2066 / $2132, and $2192. In particular, a daily bar closing above the significant $2132 barrier encountered during the last rally will accelerate the momentum in the Ethereum price.
The most striking formation on the four-hour chart for Ethereum is the ascending channel formation. The levels touched by the latest bar formations in Ethereum will mark the beginning of a period to make or break. Additionally, the price fluctuating in a narrow range could have a negative impact on Ethereum in the short term.