The cryptocurrency market continues to experience the effects of the holiday season, with leading digital assets like Bitcoin and altcoins facing selling pressure and significant volatility drops. As investors await the outcomes of spot Bitcoin ETF applications, the focus shifts to Ethereum‘s chart analysis to predict its future movements.
Ethereum’s daily chart maintains the spotlight with its ascending channel formation. The cryptocurrency has recently been trading within a tight range, leaving investors on the lookout for a decisive break above support or resistance levels. A close below the EMA 21 (blue line) could signal a potential short-term bearish scenario for Ethereum.
Key support levels to watch for Ethereum are $2256, $2193, and $2134. The $2256 level, in particular, has been critical lately, and a daily close below it could lead to a short-term decline in Ethereum’s price.
On the resistance side, Ethereum faces important levels at $2306, $2385, and $2490. A daily close above the $2306 hurdle could help Ethereum gain momentum and potentially lead to an uptrend.
Analyzing the ETH/BTC daily chart, a descending channel formation is evident, with no significant support or resistance breakouts providing crucial insights for investors. Ethereum’s recent momentum against Bitcoin reversed after touching a resistance level.
For the ETH/BTC pair, essential support levels are at 0.05351, 0.05200, and 0.05028. A daily close below the 0.05351 level could result in Ethereum losing value against Bitcoin. Conversely, resistance levels at 0.05503, 0.05626, and 0.05829 are crucial, with a close above 0.05626 potentially leading to Ethereum appreciating in value relative to Bitcoin.