Can Ethereum Hold This Crucial Level and Continue its Ascent?
ETHUSDT presents a clear bullish structure on the daily timeframe, having recently broken out of a multi-month consolidation pattern. The market has encountered a significant resistance zone but has since pulled back to test a key support level. The price action is currently defined by a series of well-established support and resistance zones, along with a crucial rising trendline, which together will determine the asset's next major move.
1. The Bullish Impetus & Key Resistance:
All-Time High Resistance ($3900 to $4000): This upper red zone represents a significant supply area where sellers have historically entered the market, preventing a new all-time high. The recent rally encountered resistance in this zone, leading to the current pullback.
The Rally from the Consolidation: Following a period of consolidation, Ethereum staged a powerful rally, breaking through several resistance levels on its way to re-testing the all-time high zone.
2. The Immediate Support Zone:
First Support ($3300 to $3500): The current price is engaging with this green zone. This level has been a key area of previous support and resistance, and its ability to hold as support will be a critical test for the bulls. A successful defense of this zone would be a strong signal for a continuation of the upward momentum.
3. The Crucial Level & Trendline Confluence:
Crucial Level ($2700 to $2900): Below the immediate support lies a more significant support confluence zone, marked by the blue box and a rising trendline. This "Crucial Level" is a major demand zone that has previously served as a pivot point in the market. The confluence with the rising trendline, which has been providing support since late March, makes this a highly significant area.
0.5 Fibonacci Retracement: This area also aligns with the 0.5 Fibonacci retracement level of the recent major move, reinforcing its technical importance. A break below this zone would suggest a significant shift in market sentiment.
4. The Ultimate Support:
Long-term Support ($2000 to $2200): This lower green zone represents a robust long-term support level. If the "Crucial Level" were to fail, this area would be the next major target for a deeper correction. The 0.618 Fibonacci level is also situated within this zone, further highlighting its significance as a potential bounce area.
Conclusion:
ETHUSDT is currently re-testing its first major support zone after a rally toward all-time highs. The ability of the bulls to defend the "$3300 to $3500" level will be crucial for a potential re-test of the "$3900 to $4000" resistance. A failure to hold this support would likely lead to a retracement toward the even more critical "$2700 to $2900" level. The integrity of the rising trendline and the "Crucial Level" will be the ultimate determinant of whether the long-term bullish trend remains intact.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
ETHUSDT presents a clear bullish structure on the daily timeframe, having recently broken out of a multi-month consolidation pattern. The market has encountered a significant resistance zone but has since pulled back to test a key support level. The price action is currently defined by a series of well-established support and resistance zones, along with a crucial rising trendline, which together will determine the asset's next major move.
1. The Bullish Impetus & Key Resistance:
All-Time High Resistance ($3900 to $4000): This upper red zone represents a significant supply area where sellers have historically entered the market, preventing a new all-time high. The recent rally encountered resistance in this zone, leading to the current pullback.
The Rally from the Consolidation: Following a period of consolidation, Ethereum staged a powerful rally, breaking through several resistance levels on its way to re-testing the all-time high zone.
2. The Immediate Support Zone:
First Support ($3300 to $3500): The current price is engaging with this green zone. This level has been a key area of previous support and resistance, and its ability to hold as support will be a critical test for the bulls. A successful defense of this zone would be a strong signal for a continuation of the upward momentum.
3. The Crucial Level & Trendline Confluence:
Crucial Level ($2700 to $2900): Below the immediate support lies a more significant support confluence zone, marked by the blue box and a rising trendline. This "Crucial Level" is a major demand zone that has previously served as a pivot point in the market. The confluence with the rising trendline, which has been providing support since late March, makes this a highly significant area.
0.5 Fibonacci Retracement: This area also aligns with the 0.5 Fibonacci retracement level of the recent major move, reinforcing its technical importance. A break below this zone would suggest a significant shift in market sentiment.
4. The Ultimate Support:
Long-term Support ($2000 to $2200): This lower green zone represents a robust long-term support level. If the "Crucial Level" were to fail, this area would be the next major target for a deeper correction. The 0.618 Fibonacci level is also situated within this zone, further highlighting its significance as a potential bounce area.
Conclusion:
ETHUSDT is currently re-testing its first major support zone after a rally toward all-time highs. The ability of the bulls to defend the "$3300 to $3500" level will be crucial for a potential re-test of the "$3900 to $4000" resistance. A failure to hold this support would likely lead to a retracement toward the even more critical "$2700 to $2900" level. The integrity of the rising trendline and the "Crucial Level" will be the ultimate determinant of whether the long-term bullish trend remains intact.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.