12-Hour Analysis:
Big Picture: Ethereum has been progressively increasing in value over the previous few weeks. EMA-32 has always been highly responsive to price movements. When the price was above this trailing EMA, Ethereum had a great run to the upside. Now that this support level has been breached, price will either get choppy or will proceed lower to re-test lower supports. Furthermore, the converging triangle has also broken down, which is a cause for concern and calls for active risk management.
On the Upside the recently lost ascending trendline level will act as an immediate resistance level for Ethereum at 1570 to 1580. This will be an important level for Ethereum to reclaim if it is to rise. Any rejections of this level will continue to put pressure on the price. Above this level, price has another strong resistance from the EMA-32 level at 1610. Both of these levels are expected to restrict the sessions’ upside potential. However, recovering these levels would negate Ethereum’s selling pressure.
On the Downside from 1530 to 1520, Ethereum is getting decent support. This is a strong horizontal level to take support from. Below this supportive region the next approaching support is a pivotal level. This support level between 1490 to 1470 has been very important historically. Over the previous seven months, any time Ethereum traded above this support level, the price stayed bullish, and every time it traded below this level, the price held a bearish outlook. To remain bullish in the short term, Ethereum would need to sustain this support level.
