1-Day Analysis:
Big Picture: Yesterday, Ethereum lost momentum after touching the resistance of 1620 to 1630 levels. This was identified as a pivotal level for the session. Buyers were unable to recover control above this level on the initial attempts, which resulted in some intra-day profit-taking. Bulls are predicted to retarget this level once more. Reclaiming this zone could result in an extreme wave of short-coverings combined with some fresh buying, perhaps pushing prices higher. Furthermore, on a daily time-frame, Ethereum is establishing bullish divergence, indicating that the sellers’ dominance is beginning to wane.
The Upside remains the same, with a significant barrier still visible at the level of 1620 to 1630. This region is presence to the weekly EMA-200 level, which served as a support level for over 200 sessions. Losing this support region has to be a blow for the bulls, but regaining it as quickly as possible could offset the impact. Ethereum’s gains are unlikely to be sustainable unless it re-establishes a foothold above the weekly EMA-200 level. If that happens, this might lead to a strong squeeze towards 1660, followed by 1700, and even possibly towards 1780.
On the Downside at lower time frames, Ethereum has developed a demand zone between 1585 and 1575 levels. At this demand zone, yesterday’s partial profit-taking was also reversed. Holding onto this zone would encourage bulls to make another push for higher resistances above. If this demand zone is breached, Ethereum will fall back towards 1555, and maybe even lower towards 1520.
