Pro Charts: Crypto

Technical Analysis On Ethereum After Latest Flush

Updated: Jul 06, 2024 | Published: Jul 06, 2024
Verified Investing
By Verified Investing
Technical Analysis On Ethereum After Latest Flush

Ethereum collapsed over the last week, breaking major support between $3,250-$3,300. The price declined by as much as 18% before tagging major support at $2,800. The $2,800 level happens to be the lowest point on Ethereum since May 1st, 2024, just before the excitement over the ETF approval hit. It was also a pivot low on that day.

The $2,800 is considered a near-term double bottom. The price of Ethereum bounced over 10% at this point, back to nearly $3,100. This is to be expected as buy-the-dippers move in to enter at prices that seem like a 'good deal'.

On a technical analysis basis, the $2,800 level remains major support. If that level breaks, the next flush takes price to a major pivot from January 2024 at $2,640.

On the bull side, if price pushes up further, it will run into resistance between $3,300-$3,350. Should that level be eclipsed, there is no major resisitance until nearly $3,800.

Technical traders follow these levels, buying support and selling resistance. A good example of this was Chief Market Strategist Gareth Soloway who bought Ethereum with members of Smart Money - Crypto at $2,825. He and his members are up about 10% already and potentially looking to take profits.

Overall, the bias on Ethereum is now neutral. Support has been tagged and bounced, but there is a zone between $2,800 and $3,300 that price could chop in for a while. Technical traders will watch the price action from this point to determine if it sets up as bullish or bearish.

Verified Investing is a data company that avoids the hype. Their analysis has no emotion, just charts and probabilities. Narratives spun by mainstream media or greed pushed on social media have no place in investing decisions. True data analysis is the way to make consistent gains.