1-Day Analysis:
Big Picture: While Ethereum retains its Bull Flag structure, it is currently developing for a possible Head and Shoulder Pattern on the daily time-frame. This reflects Ethereum’s ongoing indecision as it struggles to pick an approach. A breakthrough over 1920 remains the important pivot for negating the emerging bearish formations.
On the Upside Ethereum is presently seeking to reclaim control above the 1880 level. This would allow a move higher towards the 1900 level. This is another intraday resistance level that must be broken for price to re-enter the congestion zone between 1920 and 1940. The next breakout point for Ethereum remains above this congestion zone. A strong break above this level opens the door to significant upside potential for the pair.
On the Downside the EMA-50 remains the initial supporting level. Below this, the next level of support appears between 1830 and 1820. This is a significant support zone for Ethereum, and keeping it makes upward prospects much more likely. However, a breach of this support region could set off a possible Head and Shoulder pattern, dragging Ethereum initially towards 1790 to 1770 levels, with opportunity for more downside in the 1720 region.
