Ethereum: The most important levels you should be watching
The chart of this post shows the most important levels investors should be watching in the weekly time frame via logarithmic scale for the Ethereum cryptocurrency.
The first level for Ethereum, in red, resistance holding currently approximately $1730’s. The second level, in blue, rising supporting trendline from December 2017 lows at $6, second point March 2020 lows at $90’s, currently holding around $1000 – $1100.
The resistance in red has been holding Ethereum price below the level almost 4 weeks since the 16th of January. Despite that, Ethereum is still holding just under the resisting level and trading sideways for now. Note, according to Elliott Wave technical analysis methodology, a sideways consolidation price action most of the times tends to break in the direction of the trend prior to the consolidation meaning Ethereum at this point should not be considered bearish.
Possible bullish scenario for price action: price spikes lower towards the $1500’s before makes an attempt to break the level. If that is the case, then Ethereum will be extending higher to at least towards $2650’s to hit the upper trendline of the bearish flag (if the case of a flag – I will discuss after price makes the move).
On the other hand..
Possible bearish scenario for price action: Price starts to decline lower (at the time of this post is already extending lower), breaks the $1500’s (note it can go to $1400’s to test the 16th January thrust starting point), after possible bounces attempts fail, prices continues lower.
If that is the case, first support comes at around $1220’s and from there the next level comes at approximately $1100’s, the rising trendline in blue which should provide at least a reaction before any attempts to break lower.
Currently, shorts against the resistance after confirmation based on investors trading system or longs at $1500’s – $1400’s after confirmation based on investors trading system for a potential reversal and break of the resisting level (red line) at the $1700’s.
Until next post, trade safe.
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