red 
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. 😉
Table of Contents
Ethereum (ETH) Chart
This chart shows a very clear fundamental upward trend. Currently (22/07/2024), Ethereum is priced at around $3482. The price has been falling throughout 2022, but in recent months, we have continued to see a strong upward trend, pushing the price up by around 130% since October 2023.
What do you think is happening?
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.
The weekly moving average has been trending upward for almost 8 months, indicating an uptrend. Currently, the tension between price and value has completely diminished due to the sharp decline we are seeing. We should wait for the price to stabilize at one of the levels before resuming the upward momentum. Do you see it clearly? What decision will you make?
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?
I have marked the bullish move that has been taking place since the end of 2023 on the weekly candlestick chart. You can see how the bullish swings have been taking place quite strictly, gradually creating new lows and highs. This move has allowed the price to reclaim a large part of the decline that took place in 2022, and it has now strongly broken through the psychological barrier of $4,000.
What could happen now? We are witnessing a strong correction that could bring the price back to the levels we talked about earlier, providing good opportunities to buy at a lower price. Currently, the price structure is bullish again on a daily basis, and the ideal scenario is to break the $4,000 area to confirm the continuation of the uptrend.
It is very important at this time not to get carried away by the fear of missing out and stick to your strategy. Wait for the price to return to the support area to look for a better entry price.
6- Fluctuations
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.
On the chart, we have highlighted (in orange) the recent periods of high volatility for Ethereum. We notice that the high volatility coincides with the strong increases needed to break the resistance levels at $4,000 and $3,600. Currently, we see a slowdown in the resistance area accompanied by a large and strong red candle. A few days ago, there was a strong push higher again. We have to wait and see if the previously mentioned uptrend will start again.
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.
