Ethereum is having a very good day today. The currency rose more than 6.5%, surpassing the previous high. With this, ETH seems to be starting an uptrend, so let’s take a look at the charts.
The big picture
We’ll start this analysis with a quick look at Ethereum’s weekly chart. We only include this to highlight two important price points. I’m talking about the two gray areas of about $900 and $2,100.
These have influenced the price so often that it is difficult to ignore them. The upper level offered a lot of resistance to the price in 2023. Ethereum has tried to break out of this zone before, but was rejected each time.
Just earlier this month, ETH managed to cross the $2,100 mark and has been a treat for all Ethereum fanatics ever since. The currency immediately rose by several percent and then briefly fell into the gray zone.
The upward trend has begun
To analyze this further, let’s take a quick look at the 4-hour chart. Here each candle represents 4 hours, which gives us a better overview of the short-term price. The coin is making good moves during this period.
As you can see, an extra green zone and red line have been drawn here. The green zone was created within the gray zone, essentially forcing ETH to overcome two resistances in one. But as I later suggested in previous Ethereum reviews, it would be positive if the price returned to the gray and green zones before the surge.
This shows that there are now buyers who are close to a price level at which a lot of sales were previously made. This is a very optimistic sign and that is reflected in the result.
Ethereum broke out of the green zone and then made a higher low, and – as indicated by the red line – ETH now appears to be making an even higher high. The latter is perhaps the most important part of an uptrend.
If this continues, we could see some good number two rallies in the crypto space. But for this to happen, the market must remain stable. Only when the currency falls below previous lows do price developments become negative. But with his strong support, this scenario seems increasingly unlikely.
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.
