Big Picture: Ethereum is still surviving due to the channel formation. The previous several weeks have been rough for price activity, as it has been choppy and indecisive for the most part. Furthermore, with waning momentum, buyers are likely to lose the current trend and re-test lower supports before any further possible continuation. To offset this indication of exhaustion, strength over 1680 is key.
On the Upside Ethereum again got crowded between the 1650 and 1680 levels. This level has once again been overwhelmed with sellers, preventing buyers from advancing higher. Strength above this zone is once again required to expand price’s upside potential.
On the Downside price is holding onto the channel’s supporting trendlines. Maintaining this trend would keep rising prices, although slowly. If this channel is violated, Ethereum is projected to fall back towards the intraday support range of 1570 to 1565. Intraday short-coverings are still expected here. Any increase in selling pressure below this level will swiftly bring the price down towards 1540 and possibly back into the main supportive range of 1490 to 1480 levels.
