1-Day Analysis:
Big Picture: Ethereum is once again leading the bullish rally from the front. Price, on the other hand, is currently clashing with major EMAs on both sides. EMA-200 acting as a support level, while EMA-250 serving as a resistance level. To make the next impulsive move, Ethereum must clear either of these levels. Moving above the EMA-250 level will maintain the bullish momentum and lead to higher targets, while a break below the EMA-200 level would lead to a profit-taking situation.
On the Upside at 1605, there is immediate resistance at the EMA-250 level. This is still a significant barrier level for Ethereum. However, exceeding this would provide a significant lift for buyers, who are then expected to target 1625 level next, followed by the 1640 mark, and could possibly go even higher into the 1680 range. This level of 1680 has not been broken since mid-September, and it is likely to trigger a strong wave of profit-taking.
On the Downside the EMA-200 level at 1505 provides immediate support for Ethereum. Any aggressive profit-taking event is unlikely as long as this support level holds. However, if price falls below this level, it might lead to a re-test of significant breakout-based supports around 1495 and 1435. Furthermore, Ethereum’s oscillating indicators are severely oversold.
