ETH-“Ethereum in a Corrective Phase”

2-Hour Analysis:

Big Picture: The 3-Day Supply zone initially displayed little reaction, but despite several tries, it did not enable the bulls to surge over it and unleash another breakout. This has resulted in very aggressive profit-taking for the pair, exposing Ethereum towards lower levels. Ethereum’s RSI was consistently above 70, however after 31 sessions, it has now gone back below 70. This cool down was becoming increasingly important to avoid any exhaustion that may have caused more trouble for the bulls.

On the Upside Ethereum is going face very strong resistances above. Initially, the 3725 mark serves as a difficult barrier. This is an important level that must be reclaimed; otherwise, the upside will remain limited to this level. Price acceptance above 3725 will allow the upside to extend towards 3820 and 3880 levels. Above 3880, the next upside important milestone is 3980 and 4000 mark once again.

On the Downside as important S/R levels approach, Ethereum is likely to receive a surge of support protections. This may potentially increase volatility in the pair. Ethereum is seeing first support at the 3650 level. A couple of candles have tried this support, but none have been able to close below it. As a result, this level will continue to serve as the principal support. Meanwhile, below this, the next support level is 3550, with S/R levels ranging from 3525 to 3510. This is where really heavy purchasing could be observed.