ETH-“Converging Triangle”

1-Day Analysis:

Big Picture: Ethereum challenged the bottom support base of the converging triangle pattern formation during the weekend. Price was able to effectively hold on onto these supports, resulting in a good rebound that pushed the price back up. The pattern is still intact, and price is consolidating inside the boundaries. Moving forward, a breakout of this pattern is expected to trigger the pair’s next impulsive move.

On the Upside the session’s first wave of resistance occurs between 2040 and 2050. On the lower time frames, this is a good S/R level for the pair, and there have been some reactions to it. As a result if price is to climb any further higher surpassing this hurdle will be essential. Surpassing this would enable a climb higher towards 2080. Pattern resistances are there around this level breaking, which will lead to another breakthrough.

On the Downside Ethereum has re-established the 2000 and 1980 levels as its primary support levels. These levels have had favorable reactions on lower time frames, but the major supports for the session remain at the pattern’s base formation at the 1935 to 1915 levels. Furthermore, stronger EMAs are nearing this supportive area, adding to the support. Moreover, despite all of these levels, a drop below 1915 could result to a push lower into 1880 and 1820.