Ethereum (ETH) Market Analysis (18th July 2024)

Ethereum (ETH) Market Analysis (18th July 2024)

As of the latest 4-hour chart analysis of ETH/USDT on Bitget, Ethereum is trading around $3,818, reflecting a modest gain of 0.47%. Key moving averages (EMA 20, 50, 100, 200) are providing crucial insights:

  • EMA 20: $3,764.94
  • EMA 50: $3,479.75

The EMAs suggest that ETH is currently in a positive momentum, hovering above key moving averages, which are acting as dynamic support levels.

Resistance and Support Levels

The chart highlights several critical resistance and support zones:

Resistance Levels:

  1. $3,512.26: ETH is currently testing this level. A close above this resistance could pave the way for further upside.
  2. $3,732.47: This is a more significant resistance level. If ETH can sustain above $3,512.26, it could potentially target this level.

Image 2

Support Levels:

  1. $3,316.16
  2. $3,310.77
  3. $3,255.05
  4. $3,135.70
  5. $2,815.59
  6. $2,700.36

These levels are crucial for managing risk and identifying potential entry points during pullbacks.

Bullish Momentum Catalyst: SEC Announcement

One significant upcoming event that could inject bullish momentum into ETH is the announcement from the SEC that issuers can start trading ETH funds from next Tuesday, July 23. This development is expected to generate increased interest and liquidity in the market, potentially driving the price higher.

Potential Impact:

  • Increased Institutional Interest: The ability to trade ETH funds could attract institutional investors, providing a significant boost to the market.
  • Market Sentiment: Positive regulatory news often results in improved market sentiment, encouraging retail investors to enter or add to their positions.

If ETH manages to close above the $3,512.26 resistance and remains stable, it is likely to test the $3,732.47 resistance level. Given the SEC's positive news scheduled for July 23, a bullish momentum could further propel ETH prices.

Trading Strategy:

  1. Long Position: Consider entering a long position if ETH closes above $3,512.26 with a target of $3,732.47. Place a stop loss below the $3,479.75 (EMA 50) to manage risk.
  2. Monitoring Pullbacks: Watch the support levels at $3,316.16 and $3,310.77 for potential entry points if ETH retraces before moving higher.

Keep an eye on trading volumes and market reactions post-SEC announcement to adjust strategies accordingly. As always, ensure to stay updated with the latest news and technical indicators to make informed trading decisions.

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