Ethereum on the Verge of Breaking Out
Gundu/Ethereum seem to be close to breaking the line that has followed the price since its all-time high was registered in November 2021. Technical Analysis By Grizzly The Daily Chart Ethereum has reach[...]
It's been an exciting few days for Ethereum investors, as the value of the cryptocurrency has increased by 25%. This surge has brought it closer to its all-time high, which was set in November 2021. There's a lot of speculation as to what will happen next, but one thing is for sure: Ethereum is on the rise, and people are taking notice.
Technical analysis can help you spot trends and make better investment decisions.
I'm Grizzly, a Bitcoin and cryptocurrency enthusiast. I believe that Bitcoin and other digital currencies have the potential to change the way we think about and use money. I'm excited to see how the space evolves in the coming years and I'm committed to helping others learn about and benefit from this technology.
The Daily Chart: Your source for the latest news and analysis
Ethereum's recent price movements have been thwarted by a significant resistance zone around $1,800. This zone is created by the convergence of two descending lines (in yellow and orange) and a horizontal resistance line (in red).
It seems that the bulls are losing ground, as the price has dipped below the $1,420 mark. This recent development presents an opportunity for the bears to retake control of the market.
The market is currently experiencing bullish sentiment in the lead up to the Merge. If the bulls are able to reclaim $2K, this sentiment will be amplified. However, if the market fails to break this level, expectations of a rally will be dashed. In this case, the first area of solid support lies around $1,400.
There are a few key things to keep an eye on in the coming days. First, it will be important to monitor the daily structure. This will give clues as to whether the bulls or bears are in control. Second, the strength of the upper wicks will be important to watch. This will show how determined the bears are to defend the resistance zone.
The key support levels for gold are currently at $1650 and $1420, while the key resistance levels are at $1800 and $2100.
The moving averages suggest that the market is bullish in the short-term, but bearish in the long-term.
The ETH/BTC Chart: A Comprehensive Guide
On the ETH/BTC chart, the ascending line (in orange) is now acting as resistance. Additionally, for the third time in 50 days, the 14-day Relative Strength Index (RSI) has encountered resistance at the descending line (in white) after reaching above 70 again. This is considered an overbought zone, and because of the negative divergence (in red), it appears the trend is steadily becoming weaker. It's important to keep an eye on this chart and indicators, as they may be signaling a change in the market trend for ETH/BTC.
A break and close below 0.08 BTC could signal a trend reversal, with the next support likely being found at 0.073 BTC.
The Bitcoin market is currently facing some key support and resistance levels that could determine its near-term price action. The 0.0.0.08 and 0.073 BTC levels are key support levels, while the 0.088 and 0.093 BTC levels are key resistance levels.
There is no doubt that Ethereum has been one of the best performing cryptocurrencies in recent months. However, it still needs to break past a key level in order to initiate a sustained rally. At the moment, Ethereum is trading just below the $230 resistance level. A breakout above this level is needed to trigger a move higher.