The new year is off to a great start for most cryptocurrencies, and Ethereum is no exception. The currency has already risen 7% since the start of the new year and is trying to cross the $ 2,400 mark. Let’s look at the graphs.
Broken main resistor
Let’s first analyze Ethereum’s weekly chart. Each candle represents 7 days. In fact, we only use this graph to emphasize the importance of the top gray area. ETH encountered a lot of resistance here last year.
Since Ethereum broke this zone, the price has already reached $2,400 twice, and the coin now appears to be making a third attempt to break this barrier. If that happens, we can probably expect this coin to rise even further as it surpasses the previous high.
What happened in the last two months?
To see it better, let’s also take a look at the daily ETH chart. Here each candle represents 24 hours so we can better see the movements of the past month. This is important to better see smaller price levels – such as the green area around $2,100 and the red resistance line at $2,400.
The green area, which was also in the middle of the gray area, was very important last month. The coin initially encountered resistance here, but buyers continued to buy below this price level. This caused the price to reach higher and higher lows, resulting in a breakout from this zone.
The price then shot up, after which we had to wait for a test of this gray and green area. It is very common for a currency to return to this price after crossing a major price level. There are usually enough buyers in these zones to drive the price even higher, as I described in this Ethereum review.
What else can we expect?
Fortunately, the price shot straight into this green area and then rose to 15%. As a result, the coin reached a price of $2,400; the place where ETH now wants to move forward.
As I mentioned above, a breakout of this level will likely result in more upside potential. Ethereum has been on an upward trend for some time now and there are no real signs that the coin will fall much further.
However, the coin may encounter resistance here for the third time. In this case, it remains important that buyers continue to buy more. Therefore, just like in the green zone, we may see increasingly higher lows below this price level. Typically, these types of patterns are followed by a breakout at the top, which could eventually allow Ethereum to break above the $2,400 price.
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.
