📊 Technical Analysis of Ethereum (ETH) – Educational Overview
1. Price Trend & Market Structure
• Trend: Identify whether ETH is in an uptrend, downtrend, or sideways range.
• Uptrend: Higher highs and higher lows
• Downtrend: Lower highs and lower lows
Use line charts, candlestick charts, and moving averages to spot trends.
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2. Key Technical Indicators
📈 Moving Averages (MA)
• 50-day MA and 200-day MA are commonly used.
• If the 50-day MA > 200-day MA → bullish crossover (Golden Cross)
• If the 50-day MA < 200-day MA → bearish crossover (Death Cross)
📊 Relative Strength Index (RSI)
• Measures momentum (scale: 0–100)
• Above 70 = Overbought
• Below 30 = Oversold
• Helps spot potential reversal zones
🔄 MACD (Moving Average Convergence Divergence)
• Signals potential buy or sell moments
• Bullish crossover: MACD line crosses above the signal line
• Bearish crossover: MACD line crosses below
📉 Volume
• Confirms the strength of a trend
• Rising prices + high volume = strong trend
• Rising prices + low volume = potential reversal or weakness
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3. Support & Resistance Levels
• Support: A price level where ETH tends to bounce up from
• Resistance: A price level where ETH often gets rejected
These levels are determined by historical price action and volume clusters.
Example:
• If ETH repeatedly bounces around $1,800 → $1,800 is support
• If ETH struggles to break above $2,300 → $2,300 is resistance
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4. Chart Patterns to Watch
These patterns can signal possible future price action:
Pattern Type Meaning
Ascending Triangle Bullish Possible breakout to the upside
Descending Triangle Bearish Possible breakdown
Head and Shoulders Bearish Trend reversal
Cup and Handle Bullish Continuation of uptrend
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5. Fibonacci Retracement
• A tool for predicting possible support/resistance zones during pullbacks
• Common levels: 0.382, 0.5, 0.618
• Helps traders enter during corrections in an ongoing trend
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6. ETH vs BTC Chart
• Shows whether Ethereum is outperforming or underperforming compared to Bitcoin
• When ETH/BTC is rising, Ethereum is gaining strength relative to Bitcoin
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🧠 Summary of Educational Key Points
Tool Purpose
Moving Averages Identify trend direction
RSI Detect overbought/oversold zones
MACD Show momentum and reversals
Support/Resistance Define entry/exit points
Volume Validate moves
Chart Patterns Spot breakout or breakdown scenarios
Fibonacci Find potential bounce or rejection zones
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