1-Day Analysis:
Big Picture: The previous important S/R level, which has been effective since February, has now blocked bulls from breaking higher twice. Initially, the 1660 level proved too powerful in September, and after price was able to exceed it, Ethereum was hit by the following S/R level. Furthermore, Ethereum’s Relative Strength Index (RSI) values have been oscillating between 0-70 since April, confirming that the extra bullish boost is still lacking.
On the Upside The initial resistance level for Ethereum is 1660 once again. Above this price, a strong barrier will be encountered between 1720 and 1730 levels, which has important historical S/R relevance as well as the existence of the EMA-200 and EMA-250. Overturning this level would put the price in a good position to surge higher.
On the Downside price is currently surviving between 1630 to 1620, but sustained pressure at this level might disrupt Ethereum’s support and extend the decline deeper. The next level of support for Ethereum would be 1565, followed by 1550. These supports are still strong and are likely to invite some prospective short-coverings, causing the price to rise again. However, as long as the price stays over 1620, the downside remains protected.
