Ether Flirts With $2,400 LevelWhats Next For The Cryptocurrency?
Technical analysts identified key support and resistance levels as ether fluctuated near $2,400.
Ether prices have rallied lately, climbing over the last week and fluctuating close to the $2,400 level today.
More specifically, the cryptocurrency reached as much as $2,389.12 this afternoon, CoinMarketCap figures show, after falling under $2,250 less than a week ago.
Analysts singled out a handful of factos as driving these gains, citing technical upgrades and speculation that the U.S. Securities and Exchange Commission will soon approve a spot-based exchange-traded fund for ether.
After reaching the aforementioned intraday high, the ether token, which serves as the native digital asset of the Ethereum platform, fell back very slightly, but still managed to retain the vast majority of its recent gains.
At the time of this report, it was trading at roughly $2,360.
Following these latest price movements, whats next for the worlds second-largest digital currency by total market capitalization?
Key Support Near $2,000
Several market shed some light on this matter, supplying technical analysis that traders can use when following the cryptocurrency.
Some of them identified crucial support near the $2,000 price level.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, was one such individual.
From a technical standpoint, I believe its important that Ether stays above the major support level of ~$2,000, he stated.
This was a major resistance level over the last 2 years that has since broken and been proven so far as a new support level, said Sifling.
Ether continues to make higher highs and higher lows, which typically is a solid technical sign for a continued breakout, he added.
William Noble, who currently serves as Director of Research and Content Development for Emerging Assets Group, offered a similar take, pinpointing support near $2,050.
Support is near $2,050 and resistance is near $2,600, he specified, adding that ETH has been confined to that box for a while.
Armando Aguilar, an independent cryptocurrency analyst, singled out a slightly different level when identifying key support.
Support has formed in the high $2,200s supported by bullish traders, he stated.
Important Resistance Levels
The technical analyst offered further clarity on the matter by pointing to price levels that could serve as resistance.
According to technical indicators on TradeView, the first major resistance level for ETH is near the $2,340 level, following high $2,300s which could make ETH break past $2,400 without much resistance until high $2,400s, said Aguilar.
He noted that if the digital currency is unable to break free of these specific price points, it could fall back.
If ETH fails to clear the mid $2,300s resistance levels, it could face a downward trend until it reaches the $2,150 $2,200, said Aguilar.
If ETH breaches these levels, the blue chip crypto could move toward the low $2,000s levels.
Sifling also outlined some important resistance levels, albeit higher than the ones singled out by Aguilar.
Looking at the upside, its important for Ether to break the recent highs around $2,700 and should run into more resistance at the $3,000 and $3,500 levels, which were prior highs in 2021 and 2022, he stated.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
Read more: https://mcc.exchange/2024/02/07/ether-flirts-with-2400-level-whats-next-for-the-cryptocurrency/
Text source: MCC.EXCHANGE
