2-Hour Analysis:
Big Picture: ETH is beginning to show indications of exhaustion. It is creating a rising wedge pattern, indicating structural weakness. Before it can continue to climb much further, ETH requires a good correction. However, a firm close above 3650-3680 is necessary to negate this weakness. This would restore ETH to charged mode and aim for the 3780-3820 area.
On Upside, Strong resistances are in the horizon for ETH. At first, a substantial resistance exists between 3510 and 3530. For the past few hours, this level has been capping the upside. To advance on to the next resistance, ETH would have to break through this. In the area between 2610 and 2650, the following level has a few really strong resistances. This is where the rising wedge top resistance meets the horizontal resistance. To negate this bearish structure, ETH would have to break through this level with significant force. A good break above 3680 would then open the door to 3780-3820.
The Downside The initial level of support, 3455, is still in place, followed by 3410. The next level of support is predicted at 3270-3250. These are incredibly strong ETH supports, which will likely attract intra-day dip buyers once more. However, ETH might fall as low as 3200-3150 in the event of a lengthy profit-taking scenario. In this location, the combination of EMA-50 and EMA-200 12-hourly with Demand Zone provides a lot of support. This is where we can expect the correction to end, and a new bullish wave to begin from this point.
