1-Day Analysis:
Big Picture: Ethereum’s aggressiveness has reached a 23-session high, with RSI remaining above the overbought level for the past 23 trading days. This is the second-longest streak since 2017. This demonstrates the bulls’ increasing aggressiveness as they seek for the 3-Day supply zone levels above. Although the current overheated conditions encourage aggressive risk management, as they could force in some extremely significant profit-taking in intra-day sessions.
On the Upside Ethereum is breaking above the 3800 resistance level and is moving towards 3890. This is the last important challenges before the Ethereum pushes towards its three-day supply zone above 4000 to 4130 levels. This will be a key resistant zone, which may result in significant profit-taking or partial slowdowns. With resistances coming, risk management is suggested.
On the Downside 3800 and 3755 are expected to be converted into primary supports. However, given the circumstances, any panic profit-taking may quickly break through these supports drag Ethereum lower again into the 3600 to 3540 levels, where a strong 4-hourly demand zone is now positioned. Furthermore, major EMAs surround this supporting zone, offering further support.
