Big Picture: Ethereum had a mixed session yesterday, with bulls taking control at first, but above the congestion zone, price was unable to generate aggressive momentum, resulting in a strong round of profit-taking that ended the session with a Gravestone Doji and that too with highest volumes in the last several days. Going forward, bulls are aiming to reclaim a grip, but volatility is predicted to rise; in the meanwhile, caution is urged.
On the Upside Ethereum’s upward potential has been constrained by the 2455-2460 resistance zone. Price has remained above the congestion zone, but it requires a strong push for it to move towards farther higher levels, initially at 2520 and then towards 2650 levels. However, momentum is expected to emerge after bulls obtain acceptance over the 2460 mark.
On the Downside the congestion zone levels are now slowly transitioning into supports. This is an encouraging move for the Bulls. If these levels between 2425 to 2405 remain solid, the price might gain significant momentum to the upside. On the contrary, if this zone is lost again, the price is projected to slide lower and lose momentum towards the 2340 to 2320 levels all over again.