Ethereum is the second most popular cryptocurrency in the crypto world, after Bitcoin.
It is a crypto asset with various benefits that go beyond just accumulating value over time.
Currently, Ethereum has given rise to many projects, ranging from decentralized finance (DeFi) to non-fungible tokens (NFTs).
This makes the native token of the Ethereum network (ETH) essential to participate in these emerging projects, contributing to the increased demand and valuation of ETH.
To delve deeper into Ethereum, here is an in-depth analysis and forecast of its chart. I will update it every 15 days.so you won’t miss a moment. 😉
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Ethereum (ETH) Chart
Ethereum technical analysis
It is important to read charts and understand their context, such as identifying support and resistance, checking the chart trend, etc. What technical indicators does the Ethereum chart show today?
1- Support and resistance
Support is below the price, and resistance is above. Where are the levels located on this chart?
As you can see, Ethereum recently broke through the $2,000 area. From there, the price made a slight pullback and then started its massive uptrend, rocketing to $4,000. After the wedge correction, it rose back to $4,000, and today we are seeing a deep sell candle.
Were you able to take advantage of this step?
2- Where do we enter and where do we exit?
If you plan to manually exit the process, You can forget about this idea. It is important to set the entry and exit price or even stop loss correctly.
You should consider what type of investor you are:
If you want to buy Ethereum for the long term (hold), you will wait for support areas to accumulate positions. You won’t mind much if the price fluctuates. Now, if you enjoy trading (swing trader), you should be clear about where to place your entry, stop loss, and risk.
In this case, given the current price, we might set a small entry pattern if the price continues to decline to $2,700 or even $2,400. Your first target would be $4,000, and also watch if the price is able to break the all-time high at $4,870.
As you can see on the weekly chart, the price is likely to return to the $2000 area, although this may be less likely. What do you think?
Another great option is to wait for a strong break above the $4,000 level and enter a potential pullback.
3- Weekly moving average
Surely you noticed that in the charts of the medium-term strategy (weekly charts), there is always a moving average.
My advice is Select two clearly distinguishable colors for your moving average when it is rising or falling.When the color of the average is constantly changing, it indicates a sideways phase.
I have it configured as follows: The blue line indicates bullish moments, while the red line identifies bearish phases.
4- Spacings
Divergence is the opposite of convergence.If convergence means “moving toward the same point,” then divergence is “acting in the opposite way.”
So, in technical analysis, divergence occurs when the price and the indicator show opposite behavior at their extremes. In other words, one is rising while the other is falling. Let’s analyze the Ethereum chart. What do you notice at first glance?
5- Pricing structure
Technical analysis is used to predict what the price will do.
We usually use different techniques like divergence with indicators, trend lines, patterns, etc.
but Most important of all is what the price “draws” for us, which is known as the price structure.No asset moves in a straight line all the time. Sooner or later, there is too much tension in one direction, creating an imbalance between buyers and sellers that needs to be rebalanced.
This leads to the famous swings or pulses and pullbacks, forming structures of highs and lows in a certain direction.
Understanding how these movements evolve will give you clarity in spotting the direction of the assets you are monitoring. What is happening with Ethereum?
Fluctuations are often An indication that the price is accelerating in a certain direction.To gauge Ethereum volatility, pay attention to Japanese candlesticks. Keep in mind that interpreting candlesticks in trading is a matter of common sense.
Larger candles represent lower prices, while smaller candles indicate the opposite: quieter areas.
Ethereum Predictions
If you’ve reached this point, it’s because you’re really interested in seeing what happens with Ethereum.
I am not a forecaster, nor do I claim to be, but the most likely scenario for Ethereum’s price in the near term is clearly a slight correction. However, you should wait for the areas I mentioned earlier to establish a buying pattern and continue riding the new uptrend. At least, this seems to be the most likely scenario for Ethereum. The big rally we discussed was driven by the launch of Ethereum ETFs, which, similar to Bitcoin, were a huge success and created a huge demand for the asset.
It is important to watch closely to see if there is a good buying opportunity, or if the price hits a resistance level and fails to break through. Remember to be patient and wait for the right entry point instead of trying to anticipate it.
What will you do? How do you plan to position yourself?
Ethereum trading
As you already know, trading with Ethereum is not easy. Therefore, it is important to educate yourself first to make a profit. Remember to store your Ethereum in The world’s most secure ETH walletether material
And of course, don’t forget to follow the Bitcoin chart with me. Don’t buy just because the price hits a support level; always wait for a stop confirmation. If you have any doubts or questions, feel free to join our Telegram channel.
For more in-depth analysis, check out our Bitcoin trend analysis.