Ethereum found support on the yellow 21 EMA line about six weeks ago and recently faced resistance near the red R1 line at $4.1k.
Our momentum is still looking strong, with the Stochastic RSI showing a bullish cross above the 20 level. We are watching to see if Ethereum can hold support above the green S1 line at $3.5k.
It is also good news that the 21 EMA is continuing to rise, which supports our uptrend.
Looking at the market structure, Ethereum has been forming a large parallel channel since hitting lows in June 2022. The top and bottom of this channel have been acting as our support and resistance levels. The middle line of the channel was acting as resistance, but in February 2024, we broke through this middle channel resistance and rallied all the way to the top, which is now acting as resistance at $4.1k.
The middle line of the channel held as support, and we're seeing higher highs and higher lows, indicating a strong uptrend. We need to watch if Ethereum can break the previous high at $4.1k. If it can't, we might see our first lower high, which could be a warning sign of a potential trend reversal. Otherwise, we want to see Ethereum hold support above the green S1 line at $3.5k.
Key levels to watch:
Resistance: $4.1k (red R1 line)
Support: $3.5k (green S1 line)
Let's keep an eye on these levels moving forward!