12-Hour Analysis:
Big Picture: Similarly, Ethereum had a significant wave of short-coverings in yesterday’s session, pushing the price upward towards the resistances above. The increase, however, did not last as sentiment remained weak due to a lack of active buyers. If Ethereum is to see some kind of positive momentum, it must go past the 1640 level, which is likely to improve buyer’s strength even if on the short-term.
On the Upside Ethereum is still experiencing congestion in the form of dynamic levels and horizontal levels. The key dynamic levels almost coincide to the horizontal levels. The EMA-50, which sits at 1605 to 1610, remains the primary resistance for Ethereum. Meanwhile, the next degree of resistance above this level is at 1640. The EMA-100 and the range’s midpoints are both situated here, and these are the levels that limited yesterday’s price squeeze.
On the Downside Ethereum is anticipated to retest the 1580-1570 area. Price was able to convert these levels into supports, which aided the short-squeeze round from yesterday. Price, on the other hand, is going to re-test this range; if this region can survive any short-term selling, another round of relief is likely. Meanwhile, a price drop below 1570 would continue the decline into 1550 and possibly lower.
