12-Hour Analysis:
Big Picture: Ethereum’s channel top resistance has shown to be quite powerful. This trendline top has been challenged 5 times in the previous several weeks, and each time price tested it, an immediate rejection was observed; however, this time buyers made a breakout above it but failed to sustain that breakout, leading to a significant profit-taking event. Following the failure of the breakthrough, Ethereum has now retreated back to breakout levels. A strong reaction from these levels remains possible. Additionally, volatility is expected to prevail in the next few trading sessions.
On the Upside plenty of intra-day resistances have now emerged for Ethereum. A minor intraday resistance level has been identified at 1860. Beyond this level, the next resistance levels are initially at 1880 to 1900 levels followed by 1910. All these levels are likely to push aggressive profit-takings if Ethereum pushes higher into them. . Additionally, the 12-hour time frame Evening Star has been confirmed and has kept prices under pressure since its formation. Buyers must climb back over 1910 and establish a stronghold above it to offset this indication of weakness.
On the Downside Ethereum is currently on the risk of losing its early 1860 support. Breach of this support will be an intra-day setback for buyers, who will then be exposed towards the breakout levels of 1840 to 1820. This is the point at which the buyers must respond strongly. Holding onto the breakout levels is critical for buyers to maintain the short-term trend, as a price drop below 1820 could turn this profit-taking event into a selling spree, exposing Ethereum further below, initially into 1780 and possibly back into 1680 region.
