8-Hour Analysis:
Big Picture: Ethereum’s price structure remains bullish as it forms a series of higher highs and lower lows. However, momentum oscillators are indicating a possible drop in momentum. On lower-time frame Ethereum has begun to establish a bearish divergence, suggesting signs of weakness. However, Ethereum can still reach higher levels in the coming hours, which could eventually turn the premature divergence into a complex divergence. Going forward, profit-taking is advised on strength, and traders should ideally wait for a re-test of lower key supports before entering new positions.
On the Upside the 1595-1600 level is once again acting as an initial resistance level. Following this, the next resistance levels are visible at 1625, followed by 1650-1680. However, above 1700, Ethereum has plenty of untapped liquidity that could serve as a price target. Above the 1700 level, there could be significant profit-taking. If not, the momentum will push prices towards 1780, followed by 1820.
On the Downside the initial profit-taking event was controlled at 1570-1565 levels. These levels will continue to serve as initial supports as they still maintain sufficient strength. Below these, the next levels of support are seen at 1550, 1510, and 1480. Expect aggressive short-coverings when these levels are re-tested. Furthermore, at these levels, aggressive fresh-buying may well be seen.
