Ethereum Support Level Turns Resistance
By
Azeez Mustapha
PUBLISHED:
09 Sep 2024 @ 17:06
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More info about Azeez Mustapha
Ethereum bulls have been in a tug-of-war with sellers as they attempted to maintain control over the market. Initially, the demand zone at $2814.0 served as a critical support level, holding up during multiple tests in April and June. Each retest revealed increasing pressure, leaving the zone vulnerable. In August, sellers took advantage of this weakness, successfully breaking through the $2814.0 level and shifting market sentiment from bullish to bearish.
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After the breach, Ethereum found temporary relief at the $2195.0 demand zone, which acted as a fresh support level. A long wick on the candlesticks during this period indicated a swift rejection of lower prices, reflecting strong buying pressure. This triggered a 33% price rally, but the ascent was short-lived. Upon reaching the former support at $2814.0, the level now acted as resistance, stalling the bullish momentum. The market sentiment quickly turned bearish, leading to another sharp decline back to the $2195.0 level.
Ethereum Key Levels
- Demand Zones: $2195.0, $1995.0, $1785.0
- Supply Zones: $2814.0, $3542.0, $4091.0
Indicator Insights: What Are the Technicals Saying?
In early August, the Lorentizan Classification indicator signalled a clear shorting opportunity, marking the start of Ethereum’s bearish phase. This machine learning-based indicator accurately predicted the shift, aligning with the broader market’s downturn. Meanwhile, the Williams Percent Range, which identifies overbought and oversold conditions, currently shows that Ethereum is in oversold territory. This suggests the potential for a price reversal in the near future, especially if the market structure shows signs of a shift.
A takeoff from the $2195.0 level could offer a buying opportunity, but traders must watch for additional confirmation before committing to a bullish outlook. This zone represents a critical juncture, and any structural change here could lead to a new upward phase. Conversely, a failure to hold this level could open the door to lower demand zones at $1995.0 and $1785.0.
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