12-Hour Analysis:
Big Picture: Ethereum initiated a strong surge over the 1820 level, completing a number of milestones for buyers. But, as stated in earlier reports, profit-taking on strength remains the sensible approach. In yesterday’s session, Ethereum attempted to break above the trendline resistance, but failed and is now seeing massive profit-taking. Additionally, the 12-hour candlestick pattern appearing is the Evening Star pattern, which indicates a bearish reversal. Moving forward, any short-term strength should be used for profit-taking, while active risk management is recommended over the next several sessions.
On the Upside Ethereum was on the verge of testing the 1950 resistance level. After breaking above the 1820 level, Ethereum has gained more than 6% in only a few trading sessions. However for the session, 1880 will serve as an initial barrier, followed by the 1910 level. Strength over 1910 will lead towards 1950, followed by 1980 levels.
On the Downside Ethereum is presently testing the 1860 level of support. This is likely to provide considerable intra-day support for the session. Loss of the 1860 level would intensify the selling pressure, exposing Ethereum to support levels between 1840 and 1820. 1820 is a significant support level that separates this profit-taking phase from becoming violent, as failure to hold 1820 would convert this profit-taking phase into a panic sell-off, exposing Ethereum to support levels ranging from 1680 to 1650.
