Ethereum Technical Analysis: How to Trade

saldo

Ethereum is the second most relevant cryptocurrency in the crypto world, after Bitcoin.

It’s a crypto asset that has other utilities, beyond just accumulating value over time.

Currently, thanks to Ethereum, thousands of projects of all kinds such as Decentralized Finance or NFTs have emerged.

This makes the native token of the Ethereum network (ETH) necessary to trade in all these emerging projects, simultaneously increasing the demand and price of ETH.

To learn more about Ethereum, here is an analysis and forecast of its chart in depth. I will update it every 15 days, so you don’t miss anything. 😉

Chart of Ethereum (ETH)

This chart shows a clear long-term uptrend, but Ethereum is currently sitting at $2,360 (27/02/2025) after falling throughout 2025.

With such an extended drop, this could be a great opportunity to look for solid buy entries.

What do you think is driving this move? Are we looking at a longer correction, or is this the perfect dip to accumulate? 🚀

 

ethereum trend

Technical Analysis Ethereum

It’s important to read charts and their context well, such as detecting supports and resistances, checking the trend of the chart, etc.

What technical indicators does today’s Ethereum chart show?

1- Supports and Resistances

Supports are below the price and resistances are above.

Where are the levels located on this chart?

ethereum supports and resistance

As you can see, Ethereum was in a massive accumulation phase, and by the end of 2024, the breakout to the upside sent it soaring to $4,000.

Did you manage to catch that move? 🚀

 

2- Where to Enter and Where to Exit

If you intended to manually exit the operation, you can forget that idea.

Placing your entry, exit, or even the stop loss correctly is important.

You should consider what kind of investor you are. If you want to buy Ethereum for the long term (holder), you would wait for support zones to accumulate positions. You wouldn’t mind much if the price fluctuated.

However, if you like to trade (swing trader), you need to be clear about where to place your entry, your stop loss, and your risk.

trading ethereum

In this case, given the current price, we could consider buying in the $2,300 – $2,400 range, as it has seen a strong rebound and is sitting at a key support zone.

Your first target would be $3,000, and we should keep a close eye on whether price manages to break its all-time high of $4,870.

Looking at the weekly chart, there’s a chance price could dip back to the $2,000 zone, though that seems less likely at the moment.

What do you think? Would you take a position here?

 

3- Weekly Average

You may have noticed that in the charts of the medium-term strategy (weekly charts) there is always a moving average.

My advice is that you clearly define two colors in your moving average for when it rises or falls. When the average constantly changes color, it is indicating a lateral phase.

I have configured it in the following way:

  • The blue color indicates bullish moments.
  • The red color indicates bearish phases.

 

weekly moving average ethereum

The weekly moving average has been bearish for several months, and price is still falling.

Right now, the price-to-value tension has increased due to the sharp drop we’re seeing. The key here is to wait for price to stabilize at a key level before considering a reversal.

Does that make sense to you? What would be your move here? Are you waiting for support or looking for an early entry?

 

4- Divergences

Divergence is the opposite of convergence.

If converging means “directing towards the same point,” diverging is “behaving in the opposite manner.”

Thus, in technical analysis, a divergence occurs when the price and an indicator have opposite behaviors at their extremes. That is, one rises and the other falls.

Let’s analyze the Ethereum chart. At first glance, what do you detect?

ethereum divergence

On the weekly chart, we previously saw a decline in one of our key indicators—the MACD.

Right now, the MACD is in negative territory and pointing downward, moving in sync with price action. This alignment suggests that bearish momentum is still in play, and we might see further downside before a potential reversal.

5 – Price Structure

Technical analysis serves to predict what the price will do. We often use different techniques such as divergences with indicators, trend lines, patterns, etc.

But the most important thing is what the price is “drawing,” what you will know as price structure. No asset moves in a straight line constantly. Sooner or later, there is a lot of tension in one direction, and there is an imbalance between buyers and sellers that needs to be rebalanced.

This causes the price to create the famous swings or impulses and retracements, which are creating structures of highs and lows in one direction. Understanding how these movements are created will give you clarity when detecting the trend of the asset you are looking at.

What’s happening with Ethereum?

price structure ethereum

We can clearly see a strong downtrend on the daily chart, with lower highs and lower lows forming consistently since the $4,000 zone. Each bearish swing has played out perfectly, creating a textbook downtrend from 2024 to today—there’s no doubt about this structure from a technical perspective.

What could happen next?

Right now, we’re seeing a sharp sell-off, bringing ETH down to significantly lower prices, which could offer solid buying opportunities.

Key Levels to Watch

  • $2,300 zone → This is a critical support level where price could stabilize, making it a better entry point.
  • $4,000 breakout → If ETH breaks above this level, two major things happen:
    1. Resistance is broken, confirming bullish strength.
    2. A new higher high forms, signaling a potential trend reversal to the upside.

Stay Disciplined

At times like this, it’s crucial not to get caught up in FOMO. Stick to your trading plan, wait for price to reach key levels, and look for strong confirmation before entering.

What’s your play here? Are you waiting for support, or are you positioning early for the next move?

 

6 – Volatility

Volatility is usually a sign that the price is accelerating in a direction.

To understand the volatility Ethereum has, you’ll need to look at the candlesticks.

Remember, the interpretation of Japanese candles in trading is a matter of common sense.

voltility ethereum

 

On the chart, we’ve marked (in orange) the recent high-volatility periods for Ethereum.

We can clearly see how increased volatility aligns with sharp price drops, with strong hands fully driving this downtrend.

There’s no doubt about their intentions in this phase—they’ve been actively pushing the price lower.

Forecast with Ethereum

If you’ve made it this far, it’s because you’re seriously interested in what’s next for Ethereum.

I’m not a fortune teller, and I don’t pretend to be one, but in the short term, it’s pretty clear that Ethereum is likely to slow down in this zone—at least, that’s what the strength of this rebound suggests. You might even want to wait and see if we get a bottoming pattern before jumping in.

That said, Ethereum, despite being the second-largest crypto by market cap, has been the worst performer among the TOP 10 this year. It still has a long way to go before reclaiming its all-time high of $4,800. So, if the rest of the market keeps pushing higher, ETH could still have plenty of upside, making it an opportunity worth considering.

We need to watch closely to see if ETH stabilizes at key levels, forms a buy signal, or if indicators align with an entry. Patience is key—wait for the right setup instead of trying to front-run the move.

What’s your plan? Are you positioning yourself now, or waiting for more confirmation?

Trading with Ethereum

As you already know, trading with Ethereum is not easy. Therefore, it’s crucial to educate yourself first to become profitable. Remember to store Ethereum in the safest ETH wallet in the world, Material Ether.

And, of course, don’t forget to follow the Bitcoin chart with me. Don’t buy just because the price reaches support; always wait for confirmation of the stop. If you have doubts or questions, feel free to join our Telegram channel.

For more in-depth analysis, check out our trend analysis of Bitcoin.

Join our newsletter to get a $10 coupon!



    Most popular posts


    Eva Robledo - Material Bitcoin

    Eva Robledo - Material Bitcoin

    Eva Robledo has specialized in both professional marketing and advanced SEO. She is currently working on various projects related to the world of trading, cryptocurrencies, and finance. With extensive experience in content creation for these areas, among others, she brings valuable expertise to her endeavors.

    Related posts

    The Best Bitcoin Cold Wallets

    The Best Bitcoin Cold Wallets

    A cold storage wallet is a must if you’re serious about safeguarding your Bitcoin. In the first few months of 2025, over $1.53 billion has been lost due to hacking.  Major Crypto Hack Alert In February, a single hack on Bybit led to an unbelievable loss of $1.46...

    How to Withdraw from OKX: Your Complete Updated Guide

    How to Withdraw from OKX: Your Complete Updated Guide

    Imagine using OKX to buy crypto and now your digital assets are on the exchange. As any serious crypto owner knows, you should withdraw your crypto to a cold storage wallet for safekeeping. Of course, some prefer to withdraw their money to their bank account and cash...

    The Best Crypto Wallets for Long Term Hold

    The Best Crypto Wallets for Long Term Hold

    If you are investing in Bitcoin or any other crypto, a reliable and secure crypto wallet is essential. Crypto wallets come in different forms, such as hot wallets, and cold wallets. Each one provides a different level of security and use. Picking the right wallet is...

    0 Comments
    Submit a Comment

    Your email address will not be published. Required fields are marked *

    0
    0
    Cart
    Your cart is emptyBack to shop
    Calculate Shipping