Identifying support and resistance levels involves analyzing price charts for points where the price of an asset has reversed or paused its trend. Here's a general approach to finding these levels:
1. Support Level: This is a price level where a downtrend is likely to pause due to a concentration of demand. As the price of Ethereum approaches this level, buyers enter the market and drive the price up, preventing it from falling further.
2. Resistance Level: This is a price level where an uptrend is likely to pause due to a concentration of supply. As the price of Ethereum approaches this level, sellers enter the market and drive the price down, preventing it from rising further.
Based on the description of the chart you've provided, it seems that the support level could be around the lower price range where the price has bounced back up after touching it, and the resistance level could be around the higher price range where the price has fallen after reaching it.
For a more precise analysis, you would typically look for areas where the price has bounced multiple times in the past, indicating strong buying or selling interest. It's also helpful to use technical analysis tools and indicators to assist in this process.
Please remember, this is a simplified explanation, and actual chart analysis should be done carefully, considering multiple factors and using appropriate technical analysis tools. Always do your own research before making any trading decisions.
