Ethereum (ETH) trades at the cusp of change, with its current position at $2,475.79 poised between potential support and resistance levels. These levels serve as the guiding lights for traders, both those looking for short-term gains and those looking to hold their positions long-term.
Technical indicators and expert analysis offer insights into potential buying and selling zones. These zones are identified based on Ethereum’s price action, particularly its position near the lower Bollinger Bands on the daily chart. Notable analysts like Ali Martinez and KriptoBaykusV2 have shared their perspectives on Ethereum’s potential trajectory and key levels to monitor.
A close look at Ethereum’s daily chart reveals a consolidation phase occurring just below the middle Bollinger Band. This band, with the 20-day SMA standing at $2,567.92, serves as the resistance level. Meanwhile, the lower Bollinger Band at $2,403.53 acts as a support zone, with the upper Bollinger Band at $2,732.31 becoming a target should bullish pressure persist.
The 20-day SMA is currently acting as a resistance for ETH. A move above this level could signal a bullish turnaround towards the upper Bollinger Band. Conversely, if ETH fails to break past the lower Bollinger Band, it could indicate further downside potential. The RSI at 45.09 shows weak bearish momentum, indicating that while the bears have some influence over ETH, it’s not enough to push it into extremely oversold conditions.
Prominent crypto analyst Ali Martinez sees significant upside potential for ETH. He has identified a risk-reward chart pattern that he believes could propel Ether to reach $6k sooner rather than later within an ascending channel. Martinez has positioned his stop-loss just below $1,880, viewing this as a major support level against further losses. His target of $6,000 aligns with the channel’s upper trendline, signalling substantial gains if ETH continues its upward trajectory.
Another analyst, KriptoBaykusV2, highlights key support and resistance levels. According to him, the profitability of certain price ranges can be gauged using the “In/Out of the Money Around Price” model. At the current price of $2,458.51, nearly 80% of ETH addresses are in profit and may exert selling pressure at resistance levels.
KriptoBaykusV2 identifies support between $2,087 and $2,311, while resistance is expected near the $2,459-$2,531 range. Should ETH reach the $2,531-$2,827 resistance range, some investors may opt to sell to minimize losses, creating additional resistance. However, for short-term traders, the buy area ranges from $2,087-$2,311, with a profit-taking level at $2,531. For long-term investors, the $2,087 level could be considered an entry point if ETH continues its upward trajectory.
In conclusion, Ethereum’s current position is a delicate balance between potential gains and losses, with key support and resistance levels serving as the defining parameters. Both short-term traders and long-term investors need to remain vigilant and watch out for key indicators that signal Ethereum’s next move.
