1-Day Analysis:
Big Picture: Oversold conditions caused an intraday pullback, which is driven mostly by short-coverings. To build momentum and prolong this corrective round, Ethereum would need to break through the falling channel resistance on the RSI. If this is accomplished, a deeper penetration into the resistance zone will be possible.
On the Upside Yesterday’s price increase ran against resistance at the 1680 level. Ethereum need further strength to penetrate farther into the 1680-1700 range. For the time being, this is a strong resistance area which could push for aggressive profit-taking, pulling the price back down. Furthermore, the trailing EMAs of 12 and 22 are rapidly approaching this region, adding to the already congested resistance zone. Regaining acceptance above this resistance level will result in a strong wave of upside aiming for 1730 initially, followed by 1780.
On the Downside the price is being supported by the daily MA-200 level at 1630. Furthermore, horizontal support is beginning to form at this level, adding to the support levels. For the previous several months, this MA has been quite reactive and has been driving the broader trend. Holding this would benefit the bulls, while a break below this MA level would benefit the selling even more. However, below 1630, the next level of support is between 1605 and 1595.
