Big Picture: Ethereum has previously lacked momentum, but bulls displayed some strength throughout yesterday’s session. For the first time in almost two weeks, bulls were able to break through the immediate resistances, and with the biggest volumes. This demonstrates that the bulls continue to have the upper hand, and if price can maintain acceptability above the congestion zone, Ethereum may re-enter a bullish trending phase, initially returning to its recent highs and maybe even higher.
On the Upside Ethereum has again tapped the congestion zone, which is presently between 2390 to 2420 levels. This region was identified as a similar style resistance that might present bulls with another short-term challenge. If the price is able to break through this congestion zone, it will be interpreted as a sign of strength, perhaps allowing the price to channel higher towards 2455, followed by 2520.
On the Downside the earlier resistance zone, which capped Ethereum’s upside for roughly two weeks, is now expected to be retested as support. Ethereum’s initial support is likely to range between 2340 to 2320 levels. If price can turn this range back into a firm support, Ethereum’s upward momentum might be significantly boosted. Meanwhile, losing this range would result in Ethereum’s price action entering indecision while being exposed towards lower supports at 2305 and 2270.