Watch These Ether Price Levels After Cryptocurrency Surges to 3-Month High
11/12/2024 06:26Ether, the native cryptocurrency of the Ethereum blockchain, surged to a three-month high Monday. Monitor these important chart levels.
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Ether surged Monday to its highest level in more than three months, boosted by optimism about the prospects for a favorable regulatory outlook under the Trump Administration and record inflows into recently launched spot Ether ETFs.
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After a period of prolonged accumulation, Ether’s price broke out above a six-month descending channel late last week on above-average trading volume, with gains accelerating over the weekend.
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Investors should monitor key resistance levels on Ether's chart around $3,650 and $4,090, while eyeing important support areas near $3,250, $2,950, $2,720.
Ether (ETHUSD), the native cryptocurrency of the Ethereum blockchain, surged Monday to its highest levels in more than three months, boosted by optimism about the prospects for a favorable regulatory outlook under the Trump Administration and record inflows into recently launched spot Ether exchange traded funds (ETFs).
In particular, investors believe that reduced regulatory barriers could benefit Ethereum by increasing the adoption of decentralized finance (DeFi), an emerging peer-to-peer financial system that uses the cryptocurrency’s blockchain to execute transactions using smart contracts.
Spot Ether ETFs recorded net inflows of more than $215 million in the three days after the election, according to data from crypto analytics site CoinGlass, their highest three-day cumulative windfall since launching in late July.
Ether has risen roughly 38% over the past week, trading at around $3,320 recently and pushing the year-to-date gain to around 45%. Despite the recent surge, Ether has significantly underperformed bitcoin (BTCUSD), which has more than doubled in price since the start of the year.
Below, we take a closer look at Ether’s chart and use technical analysis to locate important price levels to watch out for.
After a period of prolonged accumulation, Ether’s price broke out above a six-month descending channel late last week on above-average trading volume, with gains accelerating over the weekend.
While the relative strength index (RSI) confirms the cryptocurrency’s bullish momentum with a reading above the 70 threshold, the indicator also flashes overbought conditions that could trigger near-term price fluctuations.
Let’s identify several key technical levels on Ether’s chart that investors may be tracking.
The first overhead level to watch sits around $3,650. Investors who have purchased Ether at lower levels may seek to book profits in this region near a trendline linking countertrend upswings on the chart in late March, early April, and mid June.
A decisive breakout above this area could fuel a rally up to the $4,090 region, a chart location that would likely provide significant resistance near the cryptocurrency's prominent March 2024 swing high.
During dips, investors should initially monitor how Ether’s price responds to the $3,250 level, an area where the cryptocurrency may encounter support near a trendline connecting a range of similar trading levels on the chart between April and July.
Selling below this level could trigger a fall to around $2,950, a location currently just above the descending channel’s upper trendline where investors may look for buying opportunities near the closely watched 200-day moving average and a series of lows that formed on the chart in April, May, and July.
A deeper retracement could see Ether revisit lower support around $2,720. This area may attract buying interest near a multi-month horizontal line that connects multiple peaks from early January to late October.
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As of the date this article was written, the author does not own any of the above securities.