Ethereum is currently trading above the $2,600 mark after a strong regain in momentum by bulls. Following significant volatility, the coin is now positioned within a critical resistance zone.
In recent days, Ethereum has shown strength by recovering from its recent lows, indicating a potential bullish continuation. However, analysts warn of a possible retracement in Ethereum before a major breakout to new highs occurs.
At the time of writing, the coin is trading at a price of $2,650, which represents an increase of 3% over the past 24 hours. Its market capitalisation is approximately $319.14 billion, and the trading volume for the last 24 hours is $19.84 billion.
In this overview, we will analyse the key technical levels and trend directions for Ethereum to monitor in the upcoming trading sessions. All charts mentioned below are based on the 15-minute timeframe.
Ethereum Chart Analysis & ETHUSD Price Action.
Ethereum traded at a sideways level, and the price took support at $2.5k in the last trading session. After a strong move from the $2.5k level, it plunged to the key $2.6k level in the current trading session.
If the price manages to break below the first level of support at $2,587, we can observe the price moving towards the next price level at $2,519 and $2,473. Also, if price manages to break these levels, we can observe a further downside in the near term.
On the upside, we can see resistance to the price action at levels $2,689, $2,733, and $2,797. If the price of Ethereum manages to break the first level of resistance, we can see an upside price movement to the next level of resistance, as shown in the chart.
In Closing
If the price of the cryptocurrency successfully breaks through these resistance levels, we can expect a stronger upward trend in the upcoming trading sessions. However, if the coin fails to move above the resistance levels, we can see the downtrend towards the key support levels marked.
If price fails to hold the key support levels, we can see a strong bearish trend in Ethereum in the next trading sessions.
Traders should consider these key support and resistance levels to enter long or short positions following the price break from the key levels. Also, traders can combine moving averages for more accurate entry and exit points.
