Ethereum is the second-largest cryptocurrency in the market. Like any type of asset, its prices tend to go up and down. However, for Ether specifically, there seem to be secret areas where traders are able to profit big from buying and selling. As a newbie to crypto, you don’t necessarily want to learn chart analysis. Because of this, we give you a few levels that you should pay attention to. At these levels, you could buy or sell Ethereum depending on how the sentiment of the entire crypto market. Let’s explain how to trade Ethereum in 2022 😉
What is Ethereum Crypto?
Ethereum is a blockchain network that was established in the year 2015. It has now risen to become the world’s second-largest blockchain. The Ethereum network was the first to implement smart contracts. As a result, ETH might serve as the foundation for decentralized apps (dApps). In reality, in the realms of non-fungible tokens (NFTs) and decentralized finance (DeFi), this blockchain is a frontrunner. For years, ETH has ranked second in terms of market capitalization, after only Bitcoin. Ether is the native token of the Ethereum network.
Which Prices are currently important for Ethereum?
If we look at the weekly chart of the Ethereum price, we can see that in the past the price has often found support at the price level of the old all-time high. Because of this, we feel the $1,330 level is important. An investment in the Ethereum course could be worthwhile there. Furthermore, one can see that the price has now found buyers at the $1,720 support for the fourth time. Thus, this level also serves as a strong support, which is why we classify it as important.
The Ethereum course finds resistance once at $3,050 and once at $3,900. Both course levels are close to a psychological level. Once near $3,000 and once at around $4,000. Thus, one can say that psychological levels are considered in the Ethereum course. One should not underestimate these. Especially if you want to sell a coin.
How to Trade Ethereum – When to Buy or Sell Ether?
Easy! Since we know that Ether prices find support at $1,330 and $1,720 and resistance at $3,000 and $4,000, what do you do with the information now? Well, professional traders place buy orders around $1,330 and $1,720. If you want to buy Ethereum, you should definitely not do it above $1,720. While this might make you money, higher levels are considered risky and prone to adjustments lower.
You don’t have to consider the resistances. If one wants to invest in the Ethereum course for the long term, we think that the support areas could be perceived as good entry points. You can hide resistances because you don’t want to sell your coins for the time being. If you currently want to sell your coins and swing trade, we would sell the coins once at $3,000 and once at $4,000.
Looking at figure 2 above, we can notice that currently, we stand on a very strong support area. It would be a good setup to prepare for the next ETH bullrun at current prices.