Ethereum remained strong this past weekend. This allowed us to record a good increase at the beginning of the week. The price has fallen back a bit, but it looks like the coin is preparing to rise towards $1,745. Let’s look at the graphs.
The most important price levels
First, let’s take a look at Ethereum’s key price levels. For this we use the weekly chart, where each candle represents 7 days. This way we can look back on the process.
In the image above there are two gray areas and two blue lines. The gray areas are around $900 and $2,100, which is a big difference. But as you can see, these are two places where the price has reacted strongly in the past.
Therefore, it is good to have a clear picture of these values before further analysis. These are places where buyers and sellers like to place orders because history shows that the price here can change.
ETH rises from support
Additionally, we see the two blue lines that come from two previous highs and lows. Unfortunately, this is not very visible on the weekly chart. But if we change the chart to the 4-hour chart, where each candle represents 4 hours, this becomes a bit clearer.
In last weekend’s analysis, I talked about the importance of Ethereum staying above its current support. I’m talking about a net amount of $1,550. It wasn’t a huge difference, but buyers prevented Ethereum from falling below its previous low. This allowed us to record a good increase at the beginning of the week.
The price has now also reached a higher low. This is very positive as it is often followed by a higher high. In the case of Ethereum, this could push the price above $1,640; the location of the previous peak.
If this works, the next resistance looks to be the upper blue line at $1,745. This would be a very good continuation of the sideways price movement between the blue lines. If this scenario comes to fruition, resistance is expected to emerge at $1,745, but in this case the price would have already risen by almost an additional 9%.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
