Ethereum Monthly and Weekly Analysis: Key Support and Resistance

4. Aug.

Ethereum has initiated a 146% bullish wave on the monthly timeframe but is currently undergoing a rest and correction phase.

🔍 Fibonacci Retracement Levels from 1516 to 4114:

0.38 Fib Level: 2864
0.5 Fib Level: 2548
0.618 Fib Level: 2268
🔗 Weekly Timeframe Insights:

A 624-day long ascending channel is observed.
The price is currently interacting with the midline of this ascending channel.
The channel's bottom serves as a strong support zone around 2232 to 2505, which aligns with our PRZ (Potential Reversal Zone).
🛡️ Key Points:

This PRZ lies between the 0.5 to 0.618 Fibonacci retracement levels.
The 200 MA (Moving Average) on the monthly timeframe also converges in this area.
The psychological level of $2500 is significant, with nearly $2 billion in long positions that could be liquidated around this zone.
The horizontal channel target on the daily timeframe is also situated here.
📉 Daily Timeframe Observations:

Currently, Ethereum is in a horizontal channel on the daily timeframe.
The channel's bottom coincides with the weekly support at 2865. A break below this level might present a shorting opportunity.
💡 Strategic Suggestions:

For long-term holds and buying, it’s advisable to wait until Ethereum reaches the PRZ and exhibits a bullish reaction and momentum.
Alternatively, consider entering after a break above the daily channel.
For DeFi or lending and borrowing, $2500 could be an interesting entry point, provided your liquidation level is below $1500.

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Categories:
Trend Analysis
Support and Resistance
Fibonacci Analysis