1-Day Analysis:
Big Picture: As previously said, the gain was due to a dead cat bounce caused by short-coverings and much oversold circumstances. ETH has tagged the range lows and bounced as a result. This bounce is anticipated to be limited between 2050 and 2200. Overall, ETH remains bearish in nature and may continue to channel down into the next huge support level; however, in order to offset this pressure, strength above 2230 must be shown.
On Upside ETH is anticipated to experience significant difficulty between 1990 and 2010. This is a psychological figure that has been shattered and would require enormous strength to recover. If regained, the upswing may extend to 2050, followed by a key resistance level around 2170-2200. This is where the upside should ideally be limited, but continued strength over 2230 is required to negate this pressure.
On Downside the 1850 level is providing major support for ETH, while the range lows are providing crucial protection. To avoid a big drop, ETH must maintain the 1700 range low support. Loss of this support might lead to another drop into the 1400-1290 level. This is when weekly and monthly support come into play. As a result, expect fresh buying’s and significant relief at these levels.
