2-Hour Analysis:
Big Picture: Ethereum’s weekly candles are witnessing one of their largest trend continuation that has been now extended into its seventh week. These numbers were witnessed in the 2019 timeframe. Ethereum’s macro-trend remains strongly bullish, but its short-term trend may see some sideways price action as well as some partial indecision due to extremely overbought and overextended conditions. However, to negate such developments, strength exceeding the 3-Day supply zone could prove vital once more.
On the Upside Price has fallen below an intra-day support level, which will now most likely become intra-day resistance. This range is between 3990 to 4000 levels. These levels are likely to serve as primary resistances for the day. Above this, the next resistance levels are 4030, 4065, and 4100. This is the 3-day supply range that must be crossed for Ethereum to experience renewed enthusiasm.
On the Downside price returned to the 3945 support level. Several pushes into this support level have occurred, and those tests have resulted in quick partial recoveries. However, if bulls continue to fail at the above supply zone, this support level may lose strength, opening the way for another fall lower towards the EMA-50 support level around 3880. The EMA-50 has served as a strong support level for Ethereum in recent weeks. Meanwhile, below EMA-50, there is a 2-hourly demand zone spanning between 3865 to 3850 levels.
