ETH – “Caution: Major Resistances Approaching”

2-Hour Analysis:

Big Picture: On smaller time frame, ETH is slowly showing signs of exhaustion. It has steadily progressed into the key resistances. Multiple resistance confluences exists between 2830 and 2930, which might spark aggressive profit-taking. Furthermore, if the price remains above 2930 for a substantial period of time, a breakout is possible; otherwise, the downside is the more likely outcome. Once 2750 is broken, the downside will accelerate.

On Upside, as mentioned earlier ETH has multiple strong resistances that are coming in quicker now. EMA-50 Daily at 2817 restricted the upside yesterday. This is a massive level that ETH needs to reclaim in a convincing manner to partially trigger a healthy upside. Another thing to add here is that ETH has failed to convincingly close sessions above EMA-50 since early November. A clean reclaim of this level is likely to open ETH towards the crucial breakout level of 3052.

On Downside the first level of support is observed at 2750. Holding this level is still essential, as a break below it will reopen 2675, followed by 2600. These intra-day levels are expected to serve as intra-day good supports. However, 2520 and 2490 continue to be considerably more substantial levels of support. Furthermore, these supports are shielded by a number of confluences and hence function as dependable supports.