After a few green weeks, Ethereum finally reached a price of $2,100. So the coin is encountering strong resistance, but can ETH break through this? Let’s look at the graphs.
Two big gray areas
First, let’s take a look at Ethereum’s weekly chart. Here each candle represents 7 days and gives us a vision of the past. This is important for analyzing key price levels.
They are shown in the chart above as gray areas around the $900 and $2,100 prices. These zones are places that have often caused a change of course in the past. That’s why these values are still important today.
As I mentioned above, Ethereum has finally reached the long-awaited $2,100 zone. I have already described this scenario in our previous analysis, as Ethereum has been hitting higher highs and higher lows, so this increase is not entirely surprising.
I also told these analyzes that these large zones often led to price changes, so we need to pay attention now. These key resistances are often used by investors to take profits, which can lower the price.
Can ETH overcome this?
To analyze this better, let’s also look at the daily chart. Some smaller support and resistance points are also marked here with blue lines (as seen in previous analysis). These can again become important as support in the event of a decline.
Ethereum has overcome one resistance after another and is now close to the same price as the previous high. To make progress here, ETH must grow beyond this gray area. If that happens, the price could rise by many more percentages, but this remains a dangerous situation.
If the price does not break above the previous high, a small correction may occur. This should not be a major problem as long as the coin recovers from a previous high. If this does not happen, there may be a slightly longer period of downward price developments.
Still, the market looks good and a breakout from the gray zone would not be out of place. To achieve this, no deeper soil must be created.
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.
