Ethereum (ETH) Technical Analysis
1. Analysis of the Graph
• An upward trend formation is observed on the chart.
• The ETH price broke out to the upside after moving in a narrowing triangle for a long time. This breakout can be considered as the beginning of a significant momentum.
2. Target and Prices
• Target Prices:
• First short-term target: $5,200 (previous resistance level).
• Medium-term target: 8,400 USD (post-breakout Fibonacci levels and psychological resistance zone).
• Long-term target: 12,000 USD and above (high momentum parabolic movement).
• If the current breakout can be sustained, price movement towards the levels determined above can be expected.
3. Support and Resistance Levels
• Supports:
• 3,000 USD: The main support zone where the breakout started.
• 2,800 USD: A strong demand area.
• $2,500: Major support in case of a deeper pullback.
• Resistors:
• 5,200 USD: Near-term critical resistance level.
• 8,400 USD: A major resistance zone for new price discovery.
4. Indicators
• Volume: There is an increase in volume along with the breakout. This shows that the move is solid and a reliable breakout has occurred.
• RSI: It is near the overbought territory, which may increase the possibility of a short-term correction.
• MACD: In positive territory and showing upward momentum.
• Fibonacci Extension: Fibonacci levels confirm the accuracy of the above targets.
5. Formation and Formation Reversals
• Contracting Triangle Formation: The triangle has broken upwards. This usually signals a strong uptrend.
• Trend Support: The price remained loyal to the trend support area and accelerated upwards from this area.
6. Trend Direction
• Long Term Trend: Upward.
• Medium Term Trend: Positive.
• Short-Term Trend: Upward with a possibility of minor correction in overbought areas.
7. Strategy and Recommendation
• Long Term Investors:
• Pullbacks to supports at 3,000-3,200 USD levels can be considered as buying opportunities.
• Positions can be maintained up to the main target areas of USD 5,200 and USD 8,400.
• Short Term Investors:
• Profit taking can be considered at the 5,200 USD resistance.
• 2,800 USD is a critical level as a stop-loss level.
• Risk Management:
• Stop-loss orders must be determined.
• It is important to note that the RSI is in the overbought territory. This may increase the possibility of a correction.
General Comment
Ethereum’s current chart shows long-term bullish potential. However, in the short term, caution should be exercised in light of possible corrections. Developments should be closely monitored and price action should be monitored above critical support levels.