Trade Levels: Technical Analysis On Ethereum

Cryptocurrency Ethereum continues to chop after its monster 64% move higher, triggered by the election of Donald Trump. He and his administration have stated they are pro crypto and investors are excited for pro crypto policies. After the inauguration, he will have to prove it.

This is an exciting time to be a cryptocurrency investor. However, there have been a lot of promises made that need to be kept. Should results fall short of expectations, there is potential for downside.

In addition, the altcoin frenzy has been triggered by risk-on in assets. As the stock market continues to make new highs, money has also flowed into crypto like Ethereum. This means investors need to keep a close eye on the risk on/risk off within the overall asset markets.

Using technical analysis, Ethereum has hit resistance at $4,100. This was a double top from March 2024 and so far has been the stopping point on the crypto. Should it break through this level, upside can be seen to $4,850, Ethereum's all-time high.

Looking at support, Ethereum tagged $3,540 earlier this past week. It has since bounced. However, $3,540 remains support. If this technical level breaks, the next support at $2,775, followed by $2,450.

Investors in crypto are faced with a combination of monitoring policy from the new administration while also monitoring risk-on sentiment in the overall asset markets.