After a small correction, Ethereum is once again preparing to break its resistance around $2,100. This is a price level that the coin has been struggling with for a long time, but now the coin finally gets the chance to break out. Let’s look at the graphs.
Will ETH Break $2,100?
We start this analysis with the weekly chart. Here each candle represents 7 days and gives us a vision of the past. This is important to clarify the most influential price levels. In the image below they are shown as gray areas.
Gray areas are places that have often led to a change of course in the past. That’s why these values are still important today. Because if the price rises again, the currency will likely change course again – only this time it might be a little different.
If a zone is hit regularly and then drops, it means there are sellers taking profits at those points. However, if the coin continues to make higher lows below it – as you can see in the case of Ethereum – it means that buyers are trying to push the price just above this zone.
Most prominent
At the moment, the price of ETH is officially still between the gray levels of around $900 and $2,100, but that could change if Ethereum breaks through this resistance. To analyze this further, let’s also take a quick look at the Ethereum 4-hour chart. Here each candle represents 4 hours.
We see the same gray area here as in the first chart (around $2,100). The coin has not yet surpassed this, although we can see that the coin has broken out of the small downtrend. How should this work?
The last time ETH broke out of this zone, the coin recorded lower highs and lower lows, but a higher high was recently reached. This means that the coin could break out of this zone, possibly after reaching a higher low.
The coin currently appears to be on track to break the previous high of $2,136. If this is the case, we can continue to rise to new highs, but that will require ETH to close above this zone. If that doesn’t happen, a little danger remains, but with higher and higher lows, it doesn’t seem like ETH can fall much further. Time will tell, but it’s good to keep these values in mind.
Source: BtcDirect
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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.
