12-Hour Analysis:
Big Picture: Price’s deviation over the 2000 level and afterwards the loss of the trendline has fueled the fall. The pressure remains, but a few important supports are now joining in, suggesting a cautious approach ahead. Sellers have effectively prevented price from establishing a stronghold over the 2000 level; now it is on to buyers to preserve the breakout supports in order to avoid losing another battle. Breakdown below the breakout levels will result in a lower support re-test, putting buyers in a tougher spot overall.
On the Upside Ethereum is currently facing initial resistance at levels ranging from 1820 to 1840. Surpassing these would trigger an intense round of short-coverings, pushing prices higher into the 1880 to 1920 range. This will be a significant resistance level for the session. The re-emergence of sellers at this level could also be examined. If the price begins to trade over 1920, it might trigger a panic short-covering scenario.
On the Downside price is gradually penetrating the breakout-based supports. This range spans from 1820 to 1780 levels. This was the area breaking that resulted in Ethereum’s incredible rise higher. This is still a solid support area for Ethereum. However, there are several strong supports in the shape of dynamic supports below this level. Sellers should ideally exercise short-coverings on weakness.
