Hello everyone,
Welcome back to another technical analysis from SpearTrades.
Today, we are going to discuss Ethereum, the second largest cryptocurrency by market Cap and one of the most important assets in the entire crypto market.
Right now, Ethereum is approaching a level that could decide its next major move. Let us take a closer look at what the chart is telling us.
A Trendline That Held for Years
If you look at the chart below, you will notice an ascending trendline that has supported Ethereum since June 2022.
Over the past three years, this trendline has acted as a strong foundation for the market. Every major correction eventually found buyers around this level, allowing Ethereum to recover and continue its upward trend.
However, markets do not respect support forever.
Recently, Ethereum has once again fallen below this long term trendline.
This is important because a level that once acted as strong support often becomes resistance after it is lost.
That is exactly what we are seeing at the moment.
Why the $1,800 Level Matters ?
The first level we are watching is $1,800.
This is not just another resistance level.
It sits very close to the broken trendline, making it one of the most important areas on the chart. You can see it below.
If Ethereum manages to reclaim this level, hold above it, and turn it back into support, the short term market structure would improve significantly.
That would increase the probability of Ethereum moving toward the next resistance around $2,000.
If momentum continues to build, the next major target would be the $2,420 resistance zone, where sellers have previously entered the market.
What Happens If Ethereum Fails?
Technical analysis is not about predicting what will happen.
It is about preparing for different possibilities before they occur.
If Ethereum fails to reclaim $1,800, then traders should be prepared for another move toward the $1,500 to $1,550 support zone. You can see that in the chart shared below.
This region has previously attracted buyers and could once again become an important area where demand returns.
As always, support levels should never be treated as guaranteed reversal points.
Instead, they are areas where traders should watch how price reacts before making any decisions.
Why This Moment Is Important
One thing that makes this setup particularly interesting is that Ethereum is testing a structure that has been respected for years. Have a look at it below in the chart.
Long term trendlines usually carry much greater importance than short term support and resistance levels because they reflect the broader market trend.
Whenever one of these structures breaks, it often signals that the market is entering a new phase.
That does not automatically mean Ethereum is turning bearish.
It simply means the market needs to prove that buyers are still strong enough to regain control.
The next few daily candles will be extremely important.
To conclude we can say that Ethereum is currently testing one of its biggest technical structures in recent years.
The long term ascending trendline that supported price since June 2022 has now been lost once again.
The immediate focus remains on $1,800.
A successful reclaim would improve the short term structure and shift attention toward $2,000, followed by the major resistance around $2,420. ( we have recently tested this level but Ethereum was unable to reclaim that trendline. )
If Ethereum fails to reclaim this level, another visit to the $1,500 to $1,550 support zone remains a realistic possibility. ( that is what we saw it happen already recently as you can see below )
At SpearTrades, we believe successful trading is built on preparation rather than emotion.
Instead of reacting after a move has already happened, we prefer identifying the important technical levels before the market makes its decision.
If you would like to perform similar analysis yourself, we invite you to explore SpearTrades.
Our platform provides technical indicators, support and resistance levels, pivot points across multiple time frames, Health Scores, momentum indicators, and much more to help traders make informed decisions.
The platform is completely free to explore for the first three months, and we would love to hear your feedback as we continue improving it.
Thank you for reading.
Disclaimer: This article is intended for educational and informational purposes only and should not be considered financial or investment advice. Always conduct your own research before making any investment decisions. Markets involve risk, and every investment decision should be based on your own research and risk tolerance.
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