12-Hour Analysis:
Big Picture: Ethereum’s rebound was hindered by the EMA levels. The gains for Ethereum has once again been short-lived, as the price has tested back into the lower supports. Going forward, Ethereum’s weakness remains apparent, and if buyers are to overturn this weakness, strength over 1640 remains critical. Additionally, if bulls can hold the support level of 1550, which is also a short-term range low, another wave of short-squeeze could occur, potentially stronger this time.
On the Upside initial resistance will take the shape at 1580 once more. Above this level, the next wave of resistance remain at 1610 and 1640. Furthermore, the EMAs of 50 and 100 almost correspond with these key horizontal levels. Acceptance of Ethereum over 1610 will be a positive indicator for bulls, while strength above 1610 will could set off another major wave of short-squeeze.
On the Downside Ethereum has retested the 1550 short-term range lows. The initial reaction has been fairly decent, but bulls will need much more before this level can be considered a firm foundation support for Ethereum. However, if price can hold these levels for the next few days, it will be extremely beneficial to the bulls in the short run. Furthermore, the prior price activity below 1550 would shape up as a possible deviation, which may then drive some upside for the pair.
