ETH-“Momentum Weakness Persists”

12-Hour Analysis:

Big Picture: Ethereum’s acceptance over the short-term range highs is once again fleeting. Despite recovering partial control above, the bulls were unable to capitalize on the chance and lost the level once again. Following its last push to the highs, Ethereum has created a bearish divergence. This indicates that the surge above 1920 was essentially a liquidity seeking event rather than a clear breakout. Caution is still suggested for the session.

On the Upside as price dropped a few ideal intra-day levels in the previous session have been lost as a result several intra-day resistances are expected to arise. The trailing EMAs of 25 and 50 are now expected to act as resistance levels. These resistances are situated at 1870 and 1890 levels. Above these levels, Ethereum once again has the congestion zone between 1920 and 1940. This has been a key barrier for Ethereum in recent weeks. Until and unless there is a clear break above it, the upside will be limited.

On the Downside Ethereum is now receiving support from the 1830 to 1820 levels. These are historically strong S/R levels that have been quite effective in recent weeks. Price is now witnessing some significant short-covering around these support levels. However, below these supports, the short-term range lows between 1790 and 1770 levels are the next supporting range. At these support levels, expect aggressive short-covering and fresh buying activity to increase.