ETH-“Descending Channel Formation”

1-Day Analysis:

Big Picture: As price bounced back in yesterday’s session, Ethereum was able to somewhat neutralize the coming pressure once more. However, when price falls, volume activity for the coin improves, indicating that buyers are active as price dips but have been unable to show their presence as price rises. Since the end of July, the Relative Strength Index for Ethereum has been unable to break beyond the 50 barrier, confirming bulls’ lack of aggression. Once Ethereum regains strength above the 1660 mark, the momentum could pick up significantly.

On the Upside short-term resistance has now been repositioned between 1595 to 1600 levels. If the price breaks through this resistance level, it will be able to target the 1620 to 1630 levels in the upcoming hours. This resistance level is marked by significant horizontal resistance as well as the daily-based EMA-26. The EMA-26 and the 1660 resistance level continue to be important obstacles for Ethereum in initiating any stronger moves.

On the Downside the level of 1580 is providing intraday support for Ethereum. Price has been shielded from any significant closes below this level. Expect this level to provide decent support for the session yet again. However, the next supports below this level is at 1565, followed by 1550. The 1550 level remains a possible place for a double bottom formation, therefore some short-covering may occur if the price falls into this level.