Ethereum Technical Analysis: Support And Resistance

Ethereum recently topped out at just over $4,000. If you take the all-time high of $4,900 and the bear market low of $875, the $4,000 level is a perfect 78.6% Fibonacci retrace. This gives investors a good basis for resistance and the likelihood of a pull back.

When looking at the expectations for a pull back, a likely target could be $2,300-$2,500. The reason for this level being significant is not only the two trend lines seen in the chart above, but also it is the 50% retrace of the bear market low of $875 to the $4,000 high.

When there are multiple trend lines and indicators that coordinate at a specific level, it increases the odds that the level will be MAJOR support.