Technical analysis of BTC and ETH. 25/05/23
By Artem Khomenko 99 25 May 2023
Analysis of the current state of Bitcoin (BTC) and Ethereum (ETH).
On the daily timeframe, the BTC price action remains consistent with yesterday's analysis. Bitcoin continues to trade within the support range of $25,800-$27,000, which was established nearly two weeks ago.
The relevance of all other support and resistance levels remains the same.
On the H2 timeframe, sellers demonstrated strength as the price of BTC tested and subsequently breached the support range of $26,100-$26,500 after facing resistance in the $27,300-$27,700 zone. This movement brings the price closer to the next formidable level at $25,800.
If the price fails to find support at this level, Bitcoin may continue its downward trajectory towards the $25,000 mark, aligning with the previously identified support zones on the daily timeframe.
The resistance zones at $28,000-$28,300 and $28,900 remain significant areas to monitor for potential price barriers.
On the daily timeframe, the ETH price encountered significant selling pressure at the $1,865 resistance level, which coincided with a notable accumulation of sell orders based on horizontal trading volume analysis. However, the broader resistance zone spanning from $2,000 to $2,140 has yet to be tested.
At present, Ethereum is trading within the support range of $1,700-$1,770. If buyers fail to sustain this level, the next potential support awaits at the $1,650 level, followed by the wider range of $1,374-$1,500.
On the H2 timeframe, the ETH price is consolidating within a horizontal channel, bounded by the support zone of $1,740-$1,741 and the resistance zone of $1,855-$1,887. The price action exhibits a comparable pattern to that of BTC, indicating a sustained high correlation between these two assets.
If the current support fails to uphold the price, sellers' orders are likely to emerge around the $1,700 level. Conversely, if ETH breaks out above the range, buyers will encounter resistance at $1,900, followed by a broader range of $1,917-$1,960.
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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
This analysis was informed by the following educational materials and articles from Gagarin News: