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Since as far back as January 2021, the Ethereum price has been respecting key support on the Daily timeframe.
This massive ascending channel support held the Ethereum price up all through the 2021 year despite all the wild price swings we saw play out that year.
Not only that, this Daily key support is already proving its importance for Ethereum as we can clearly see it stopped an initial sell-off that played off earlier this 2022, pointing to its value to the ETH bulls.
The question traders are now asking is can we trust this ascending channel level to continue acting as strong support for the Ethereum price all through 2022?
In this Ethereum analysis we will be breaking down the importance of this Daily key support aas well as what we can expect for both the bullish and ish price scenarios in the coming days.
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Ethereum Bullish Prediction!
For Ethereum to remain bullish on the higher timeframe, it is important that we see the Altcoin price continue to respect this key Ascending channel that is currently acting as support for Ethereum on the Daily timeframe.
It is very important because this key level was formed when the initial Ethereum bullsish rally of last year started, and if broken could indicate a coming sell-off in price.
However, if price holds this key level, we might see history reapeat itself on the ETH price chart as Ethereum begins to rally to new highs again.
Ethereum Bearish Prediction!
While we hope for a bullish outcome, it is also very important to prepare for a bearish price sceanrio. And for Ethereum, that would involve the ETH price breaking through and closing below this key level on the Daily timeframe.
A bearish close like this could spell doom for the ETH price for weeks to come. And could push the Ethereum price to lows we last saw during 2021.
Final Verdict!
Ethereum is trading at a critical level on the higher timeframe. This key level as been serving as price support for over a year now, increasing its importance to the Ethereum bulls.
A break below this ascending channel support could mean more bearish price action for Ethereum in the coming days.
But for right now, that key level is still holding strong and we hope it continues to do so.
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