2-Hour Analysis:
Big Picture: Ethereum not only challenged the 3-day supply zone, but also penetrated far inside it. This demonstrates bullish aggressiveness, and the fact that price was able to penetrate so far in the early efforts signals supply weakness. If bulls can maintain their current energy, they are likely to breach this resistance zone and advance considerably higher. Ethereum’s indicators are simply showing severe overbought circumstances, but there have been no substantial changes on the weakening front as of yet.
On the Upside the 4030 to 4100 levels maintain resistances, but any significant re-tests into this area may overpower any sellers’ presence in the zone, allowing the price to channel higher into 4200 level, followed by 4465 levels initially. If the strength is maintained, this might be managed sooner and in an extra efficient manner.
On the Downside the intra-day support of 4000 and 3990 both have offered decent initial reaction upon getting tested. The volumes saw a minor spike around this supportive region which could be particularly due to short-coverings or some intra-day buying pressure. Currently the trending EMA-32 at 3975 which has been extremely reactive towards the price was also tapped creating a favorable reaction once again. If price can sustain this region above 3945, Ethereum is likely to break past the 3-day supply zone.
