Cryptocurrencies

Analysis: Ethereum slowly climbs past $3,100


Many coins have had to deal with a lot of blows in the past week, but several coins are already recovering – including Ethereum. The coin has reached a price of 3,100 dollars again today. Let’s take a look at the charts.

Banner Ethereum 1

The big picture

To get a good idea of ​​Ethereum, let’s first look at the weekly chart. Here, each candle represents 7 days, allowing us to see the most important price levels. These are indicated in the chart below as gray, blue and red zones.

These are zones that have often influenced the price of Ethereum in the past. The coin has already built up a large price history from which we can extract a lot of information. It is therefore important to make these kinds of important levels clear in your chart.

For example, the grey and red zones are no longer important, but if the price ever returns here, you want to know that this level has caused price changes in the past. At the moment, the blue zone is important. This is the price level where ETH currently finds support.

Is ETH Starting an Uptrend?

The coin has done this before, and each time the price rose by at least 7.5%. It is therefore plausible that ETH will be able to do this again if the coin does not fall through the blue zone. To analyze this better, we will also take a look at the 4-hour chart. Here each candle represents 4 hours.

Here we can clearly see how the coin was rejected twice at the red zone (shown in the orange circles), and we should be careful that the same scenario does not occur at the blue zone. But if the coin simply remains strong from here, the price can again see nice increases.

It is starting to look good, because ETH has broken out of the blue level again. This is positive for two reasons. The first reason is of course that the coin is regaining a strong price level that can now serve as support. And secondly, Ethereum is making a higher high.

The latter is important to continue an upward trend (with higher highs and higher lows). If ETH develops such a trend, the chance of a further decline becomes smaller and smaller. Therefore, keep a close eye on the price and these levels.

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